Kalshi’s new oil contract promises non-stop exposure, but a hidden flaw could expose traders to massive weekend shocks

Kalshi, the US-regulated exchange that won approval for a Bitcoin perpetual in May, is preparing to ask the Commodity Futures Trading Commission to approve a perpetual futures contract tied to West Texas Intermediate crude oil, Reuters reported on Sept. 2. If approved, it would be the first oil perpetual to trade on a regulated US platform and would move a product structure built in crypto into the benchmark US oil market.Crypto's favorite derivative was built around assets that trade every hour, with a structure that lets traders keep the same position because the contract has no fixed expiration. Reuters said Kalshi plans to offer the WTI contract 24 hours a day, five days a week, leaving it closed during the period when an always-on oil price would be most useful.While that trade-off may improve the contract's chances in Washington, it will weaken its strongest use case. Bitcoin perpetuals can reference spot trading that runs continuously across many venues. Oil prices depend on physical supply and storage, while the futures market expresses those conditions through contracts for different delivery months. Those features stay with the commodity even when the derivative loses its...