New crypto trading products are exploding across U.S. markets, but analysts say the surge is also exposing a growing identity crisis for digital assets.

Perpetual Bitcoin Futures

Prediction market platform Kalshi launched regulated perpetual Bitcoin (CRYPTO: BTC) futures last week after receiving approval from the Commodity Futures Trading Commission.                 

Perpetual futures, or "perps," are futures contracts with no expiration date, allowing traders to maintain leveraged long or short exposure indefinitely.

Kalshi CEO Tarek Mansour called perpetuals "the purest form of trading," saying traders only need a directional view on Bitcoin and can hold positions if they choose.

The product marks the first regulated U.S. offering of crypto perpetual futures, a market that previously existed largely on offshore exchanges.

Separately, CFTC has filed lawsuits against multiple states attempting to regulate prediction markets, arguing federally regulated exchanges fall under its sole jurisdiction.

Mansour defended Kalshi's model, arguing the platform operates under one of the strictest regulatory frameworks in finance after spending four years securing exchange and clearinghouse approvals.

Speculation Vs Utility Debate

The perps launch adds to a rapidly expanding list of ways investors can gain crypto exposure without directly holding digital assets.

CNBC's Tanaya Macheel noted that major firms including Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD), Kraken and Gemini have also signaled plans to expand perpetual futures offerings.

The trend is raising a broader question across markets, if investors can trade Bitcoin through traditional financial instruments, why own the underlying asset itself?

Macheel highlighted that crypto companies still struggle to prove digital assets are "more than speculation and more than an online casino."

While stablecoins continue gaining real-world traction in payments and settlements, Bitcoin's use case remains increasingly centered around trading vehicles and speculative positioning.

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