The U.S. retail derivatives market is evolving as investors seek greater access to sophisticated trading products, including crypto derivatives, perpetual futures and prediction markets. On October 20, Webull announced plans to introduce perpetual futures to eligible U.S. customers beginning in November, initially offering contracts linked to Bitcoin and other crypto assets. The products will be listed on CFTC-regulated exchange KalshiEX and cleared through Kalshi Klear, with broader availability expected before year-end.

In an interview with Traders Magazine, Tanmay Sheth, Webull’s FCM Product Head for Futures and Prediction Markets, discusses the drivers behind the company’s perpetual futures launch, evolving retail trader demand and the opportunities and challenges shaping the next phase of the U.S. derivatives market.

What is behind Webull’s decision to launch perpetual futures, and how does the offering fit into its broader strategy?

This launch reflects Webull’s commitment to expanding access to sophisticated financial products through a technology-driven platform. Perpetual futures have become a significant part of global derivatives markets, and we believe eligible U.S. investors should be able to trade them within a regulated, onshore framework. It gives our customers more ways to engage with markets on a platform they already know. More broadly, it is part of our long-term strategy to evolve our product suite, deliver advanced trading capabilities, and give self-directed investors greater choice, while staying focused on transparency and responsible access to financial markets.

What is driving global demand for perpetual futures, and how much potential do you see in the U.S. market?

Global demand reflects several factors: exposure that never expires, the flexibility to go long or short, and the ability to manage exposure to market movements without holding the underlying asset. Together, these features have made perpetual futures central to global derivatives markets. U.S. investors are increasingly looking for more sophisticated tools to engage with digital asset markets. We see an opportunity to meet that interest by pairing innovative products like perpetual futures with the technology, customer experience, and safeguards investors expect from a U.S.-based platform.

How are crypto derivatives and prediction markets reshaping the retail trading landscape?

Crypto derivatives give traders tools to express views on price movements and manage market exposure. Prediction markets let participants trade on the outcomes of specific events, and their strength is simplicity: a clear question with a defined outcome is intuitive in a way many financial products are not. That lowers the barrier to entry and can introduce a broader audience to the core mechanics of trading, such as pricing, probability, and risk, building a foundation to progress to more complex asset classes over time.

How can platforms balance wider access to leveraged derivatives with investor protection and risk management?

Leveraged derivatives offer greater flexibility, but they also add complexity and can magnify losses, so customers must understand these products before they trade. We believe the right approach includes appropriate eligibility requirements, clear and transparent risk disclosures, sophisticated margin and risk-management controls, knowledgeable team members and support, and accessible investor education. Platforms offering leveraged derivatives should help customers understand how leverage works, how positions can be liquidated, and how quickly losses can accumulate in volatile markets.

Where do you see the biggest growth opportunities in retail derivatives, and what could shape the market over the next few years?

We see the biggest opportunities in crypto derivatives, including perpetual futures; in single-stock futures; in perpetuals expanding across a wider range of underlying assets; and in prediction market contracts. Regulatory clarity will be critical to how these markets develop: clear rules and regulated, onshore frameworks give investors confidence and bring more activity into U.S. markets. Transparency matters just as much, from plain-language risk disclosures to clear information on fees, margin, and how positions are liquidated. So do sophisticated trading and risk systems that can keep pace with growth and novel products. Together, these will determine which platforms earn lasting trust as products evolve.

What are the key trends shaping the U.S. retail derivatives market, and how is trader demand evolving?

The U.S. retail derivatives market is evolving quickly, driven by greater digital access to advanced products and growing interest in new ways to engage with markets. Traders are looking beyond traditional stock trading for tools that offer more flexibility to express a market view, manage risk, or respond to short-term developments. Three trends stand out. First, demand for short-dated contracts continues to grow. Second, crypto derivatives are expanding, and perpetual futures are bringing a widely used global model onshore: contracts with no expiration date, so traders don’t have to roll positions, offered within a regulated U.S. framework. Third, prediction markets are rising, and their easily understood format gives participants a simple way to take positions on specific outcomes and a natural entry point to more advanced products. At Webull, we see investors expecting more intuitive technology, real-time market information, and a wider range of products within a single platform.