Prediction markets target Wall Street as next phase of institutional expansion

Prediction Markets Are About to Go Mainstream, and Prop Firms Know It

Institutional money is edging into prediction markets, with a slice of derivatives firms already trading event contracts and many more preparing to follow, according to research firm Acuiti. Nine percent of institutional derivatives participants now trade prediction markets, the firm said, while a further 35% are considering entry.Proprietary trading firms are furthest along, at 13% active and 31% weighing participation. The reading comes from t…

Prediction markets target Wall Street as next phase of institutional expansion

Prediction market platforms such as Kalshi are positioning themselves to move beyond retail wagering on sports and politics, with ambitions to attract hedge funds, brokerages and other institutional investors seeking new ways to hedge risk, according to a report by the New York Times. While the platforms have built their popularity on speculative contracts tied to events ranging from elections to entertainment outcomes, operators now argue they …