When does Kalshi plan to end its Volume Incentive Program?

Kalshi said in a CFTC filing that it intends to end the program no earlier than Oct. 13.

What trading activity prompted scrutiny of Kalshi?

Reports described repeated trades of about $5,500 in ETH perpetual futures, which allegedly inflated volume. The Wall Street Journal reported the CFTC was examining the trades.

How has Kalshi responded to wash-trading allegations?

Kalshi says wash trading does not occur on its platform and that it is not under investigation. It attributed repeated prints to market makers posting fixed quotes that faster traders hit.

How much volume did Kalshi record in September?

Kalshi's September volume reached $52.98B as of Sept. 29, compared with $38.67B in August. September's figure was incomplete.

What institutional and fundraising interest has Kalshi attracted?

Ark Invest disclosed direct exposure through ARKK, ARKW and ARKF. Reuters reported Kalshi was in advanced talks to raise about $1B at a roughly $40B valuation.

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Kalshi Ends Volume Incentives Amid Wash-Trading Scrutiny

The move lands as Kalshi reports record monthly volume, draws direct exposure from Ark Invest ETFs and reportedly pursues a $1B funding round.

Zipp Editorial Aggregated from TheBlock

Kalshi Ends Volume Incentives Amid Wash-Trading Scrutiny

Kalshi plans to end its Volume Incentive Program no earlier than Oct. 13, according to a Monday filing with the CFTC. Launched in March 2023, the program rewarded traders based on their share of eligible order-book volume to encourage liquidity and improve pricing efficiency.

Why it matters

The decision comes amid scrutiny of trading activity on Kalshi's ETH perpetual futures. The Wall Street Journal reported the CFTC was examining trades after allegations that repeated trades of about $5,500 inflated volume. Those prints accounted for more than $5B in ETH perps volume over the past month. Kalshi says it is not under investigation and denies wash trading, attributing the repeated prints to market makers posting fixed quotes that faster traders hit.

Market impact

Kalshi's September volume reached $52.98B as of Sept. 29, above August's $38.67B, though September remained incomplete. At the same time, Ark Invest disclosed direct Kalshi exposure through ARKK, ARKW and ARKF, and said it sees a $1T-$5T annual prediction-market opportunity. Reuters also reported Kalshi was in advanced talks to raise about $1B at a roughly $40B valuation. Ending incentives changes one source of trading rewards as the platform faces questions about volume quality and attracts institutional interest.

#Kalshi #PredictionMarkets #ETH #MarketStructure

Frequently asked questions

When does Kalshi plan to end its Volume Incentive Program?

Kalshi said in a CFTC filing that it intends to end the program no earlier than Oct. 13.
What trading activity prompted scrutiny of Kalshi?

Reports described repeated trades of about $5,500 in ETH perpetual futures, which allegedly inflated volume. The Wall Street Journal reported the CFTC was examining the trades.
How has Kalshi responded to wash-trading allegations?

Kalshi says wash trading does not occur on its platform and that it is not under investigation. It attributed repeated prints to market makers posting fixed quotes that faster traders hit.
How much volume did Kalshi record in September?

Kalshi's September volume reached $52.98B as of Sept. 29, compared with $38.67B in August. September's figure was incomplete.
What institutional and fundraising interest has Kalshi attracted?

Ark Invest disclosed direct exposure through ARKK, ARKW and ARKF. Reuters reported Kalshi was in advanced talks to raise about $1B at a roughly $40B valuation.

Source attribution

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