WASHINGTON, May 29, 2026 — The Commodity Futures Trading Commission approved KalshiEX LLC’s BTCPERP Contract, a perpetual futures contract that references the spot price of bitcoin, allowing the product to be listed for trading on Kalshi and made available for clearing as a futures contract.
Kalshi, a designated contract market, submitted the contract for Commission review and approval on May 28 under Commission Regulation 40.3. Following its review, the Commission determined that the contract complies with the Commodity Exchange Act and applicable CFTC regulations, including the Core Principles applicable to designated contract markets.
Contract references spot Bitcoin price
According to the approval order, the BTCPERP Contract is a cash-settled derivative that references the U.S. dollar spot price of bitcoin as measured by the CF Benchmarks Bitcoin Real Time Index. The contract will trade in units of one ten-thousandth of one bitcoin and will operate on a 24-hour-a-day, seven-day-a-week basis, subject to exchange-imposed trading halts.
Unlike traditional futures contracts, the BTCPERP Contract has no fixed expiration date. Instead, it uses a funding-rate mechanism designed to maintain price convergence with the underlying bitcoin reference price through periodic payments between long and short position holders.
Commission evaluates perpetual futures structure
In its order, the Commission reviewed Kalshi’s analysis that the BTCPERP Contract should be treated as a futures contract for purposes of the Commodity Exchange Act and Commission regulations. The Commission concluded that listing and clearing the contract as a futures contract would not violate applicable law or regulations.
The order notes that perpetual contracts require a different convergence mechanism than traditional futures because they do not expire. According to the Commission, the contract’s funding-rate mechanism creates an ongoing economic incentive for the contract price to converge toward the underlying spot price of bitcoin.
Bitcoin market characteristics support contract design
The Commission said characteristics of the underlying bitcoin spot market support the functioning of the contract’s funding-rate mechanism. The order cites the bitcoin market’s continuous 24/7 trading, broadly distributed trading venues, and liquidity as factors that help support price discovery, convergence, and resistance to manipulation.
According to the Commission, continuous trading in the spot bitcoin market allows the reference price underlying the contract to remain observable while the contract is trading, while market depth and liquidity help reduce the risk of distortions that could affect settlement payments.
Analysis limited to Bitcoin and similar digital commodity contracts
The Commission said its analysis is limited to the BTCPERP Contract and similarly structured perpetual contracts referencing the spot price of bitcoin or other digital commodities with deep, active, and continuous spot market trading. The order states that the analysis does not extend to other asset classes and notes that different products may require separate review and consideration.
The Commission also encouraged market participants seeking to list perpetual contracts on asset classes outside digital commodities to engage with the agency and its staff.
Approval permits listing and clearing
Under the order, the BTCPERP Contract is approved to be listed for trading on Kalshi and made available for clearing as a futures contract. Customer positions and related collateral for the contract will be held in futures accounts at both futures commission merchants and derivatives clearing organizations.
Why it matters
The approval allows Kalshi to list and clear the BTCPERP Contract as a futures contract under the Commodity Exchange Act and existing CFTC regulations. In its order, the Commission concluded that a perpetual futures contract referencing the spot price of bitcoin may be listed and cleared as a futures contract, while limiting its analysis to the BTCPERP Contract and similarly structured perpetual contracts referencing bitcoin or other digital commodities with deep, active, and continuous spot market trading.
