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Kalshi Pitches Banks on Inflation-Related Futures Market

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Kalshi Pitches Banks on Inflation-Related Futures Market

Kalshi is reportedly readying the launch of a futures market tracking inflation metrics.

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The company, known primarily for its prediction markets, is aiming to launch the new exchange-traded futures offering in December, Bloomberg News reported Friday (Oct. 23), citing sources familiar with the matter.

The contracts would track the Consumer Price Index (CPI) and the core gauge of inflation, which does not factor in food and energy costs, the sources said.

According to the report, Kalshi has teamed with Michael Ashton, a former Barclays trader nicknamed the “Inflation Guy,” to design the contracts and court big investment firms.

The contracts would be the only futures linked directly to CPI, Bloomberg added, saying this would give Kalshi a way to attract investors in the markets for interest-rate and bond futures now offered by CME and Intercontinental Exchange.

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The report noted that Kalshi is hoping to launch the product at a moment when trading desks are focusing on inflation as they try to get ahead of interest rate hikes.

“There’s no exchange that trades this and they want to be the inflation exchange,” said Ashton, now the managing principal of Enduring Investments.

A Kalshi spokesperson told Bloomberg the company is on CPI futures, but declined to offer more details on the effort.


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