TL;DR
- Robinhood launches a new prediction market through the Kalshi platform, regulated by the CFTC, allowing bets on events such as interest rates and NCAA tournaments.
- The initiative positions the firm in direct competition with Polymarket, which gained popularity during the U.S. presidential elections.
- Robinhood’s stock rose 2.3%, reaching $40.17 per share, reflecting investor interest.
Robinhood has launched a new prediction market, available through the Kalshi platform, which is regulated by the Commodity Futures Trading Commission (CFTC).
This new product aims to expand the platform’s offerings by allowing users to place bets on various events, such as U.S. Federal Reserve interest rates and NCAA college basketball tournaments, among others.
Polymarket’s Success Attracted the FBI’s Attention
With this new market, Robinhood enters direct competition with Polymarket, a prediction platform that operates with cryptocurrencies and gained significant popularity during last year’s U.S. presidential elections. Polymarket generated over $3.6 billion in bets, which attracted considerable media attention and triggered investigations into the identities of the bettors. This situation even led to a raid on Polymarket CEO Shayne Coplan’s apartment by the FBI, who seized his phone and other devices.
Robinhood seeks to provide a space for users to predict the outcomes of political, economic, and social events, adding a new dimension to its trading services. According to the company, prediction markets have the potential to connect news, economics, politics, sports, and culture, and they expect them to play a crucial role in analysis and decision-making within these areas.
Robinhood’s Stock is on the Rise
To launch the offering, traders will be able to place bets on the projected federal funds rate for May and the upcoming college basketball tournaments. This initiative allows Robinhood to expand its services and enter an area that has gained significant traction in recent years.
As for the market reaction, Robinhood’s stock saw a slight increase of 2.3%, reaching $40.17 per share, indicating that investors are interested in this new proposal
