Retail traders chase ultra-leveraged crypto bets as US opens perpetual futures

Retail traders are flocking to crypto perpetual futures—derivatives that never expire and offer very high leverage—after US regulators allowed a few domestic firms like Kalshi and Coinbase to offer them in May. Proponents argue it marks a watershed for US markets and improves price discovery with round-the-clock trading, while critics warn of outsized risk, instant liquidations, and heightened volatility in crises. Kalshi reported about $1 billion in trading volume within a week of launch, underscoring the product’s rapid growth despite concerns from consumer advocates and market participants about potential losses for small traders.