US Crypto Perpetuals Go Live but Altcoin Markets Face Liquidity Hurdles
Kalshi launches crypto perpetuals in the US, but shallow depth and spreads may limit altcoin trading to Bitcoin only.
Kalshi has launched crypto perpetual futures for US traders, making its broader board of markets visible for the first time. The move expands access to leveraged crypto trading within a regulated US venue.
However, early indications suggest that Bitcoin may be the only market with sufficient depth and tight spreads for practical use. Altcoin perp pairs face significantly thinner order books, wider bid-ask spreads, and less predictable funding rates.
- Order book depth on Bitcoin perps is significantly deeper than on altcoin pairs.
- Spread widths for altcoins are considerably wider, increasing slippage costs.
- Funding rate volatility is higher for altcoin perps, raising carry costs.
Venue habit among traders may also reinforce Bitcoin dominance, as many professional traders already route liquidity through established offshore platforms. Kalshi will need to build trust and volume across alt markets to make them viable.
The launch represents a step forward for US-regulated crypto derivatives, but the immediate practical utility may be limited until liquidity providers commit to altcoin pairs.