Kalshi Introduces Labubu Futures for Targeted Pop Mart IP Risk Management

New York, NY – Kalshi, a U.S. Commodity Futures Trading Commission (CFTC)-regulated event contract exchange, has launched new futures contracts tied to the performance of Pop Mart's popular Labubu collectibles. This innovative financial instrument aims to provide investors with a novel tool to manage specific risks associated with the highly volatile collectible market, allowing for more precise exposure to other segments of Pop Mart's extensive intellectual property (IP) portfolio.

The introduction of these Labubu futures stems from a strategic partnership between Kalshi and StockX, a leading digital marketplace for high-demand items. Through this collaboration, Kalshi utilizes aggregated StockX market data to create event contracts, enabling participants to trade on the future resale prices of coveted collectibles, including various Labubu series. These contracts are specifically designed to offer hedging opportunities against price fluctuations in this niche yet significant market.

Joe Weisenthal, a prominent financial commentator, highlighted the strategic utility of these new instruments, stating in a recent tweet, "> The new Labubu futures from Kalshi will be really useful for people who are bullish on the non-Labubu part of Popmart's business. Let people hedge out that specific risk. Get the exact risk exposure that they want." This underscores the potential for investors to isolate and manage the performance of Labubu, which has emerged as a dominant, yet sometimes unpredictable, revenue driver for Pop Mart.

Labubu, an "ugly-cute" elf-like monster character, has significantly fueled the growth of Chinese toymaker Pop Mart. The "Monsters" series, prominently featuring Labubu, generated over RMB 3 billion (approximately US$419 million) in revenue in 2024, accounting for nearly 25% of Pop Mart's total revenue. The character's viral popularity, driven by celebrity endorsements and a "blind box" sales model, has propelled Pop Mart to record profits but has also introduced market volatility, with resale prices experiencing notable fluctuations.

Beyond Labubu, Pop Mart maintains a diverse portfolio of other successful proprietary IPs, including Molly, Skullpanda, and Crybaby, each generating over RMB 1 billion in 2024. An additional 13 IPs, such as Dimoo World and Hirono, collectively contributed over RMB 3 billion. By offering futures contracts specifically for Labubu, Kalshi provides a mechanism for investors to hedge against the unique risks and market sentiment surrounding this single, highly influential IP, thus facilitating more focused investment strategies on Pop Mart's broader range of characters and and business segments.