Robinhood Embraces Prediction Markets with KalshiEX Collaboration
"Robinhood Introduces Prediction Markets Platform, Potentially Paving the Path for Future Market Development"
Financial app Robinhood has boldly ventured into the prediction market space by teaming up with regulation-compliant exchange KalshiEX, and is set to offer event contracts to eligible users.
The new Robinhood prediction markets hub, announced on Monday, is bound to be accessible soon across the nation. To kick things off, the platform will feature contracts centered around major events such as the March Madness college basketball tournament and the Federal Reserve's interest rate decisions.
In the upcoming months, Robinhood looks to expand its offerings to encompass a variety of financial market, sports, and political events. The company's stock price soared by over $5.2 following the announcement in opening trading on Monday.
Prediction markets became popular years ago, but their growth in the U.S. has been suppressed due to regulatory hurdles. Platforms like Kalshi and Polymarket, however, gained traction during the last presidential election by managing billions of dollars in wagers and correctly predicting Donald Trump's victory.
Robinhood isn't new to this game; it previously experimented with prediction markets and even allowed users to place bets on the presidential election. The app faced regulatory challenges in February when it attempted to introduce Super Bowl-related contracts, which were pulled by the Commodity Futures Trading Commission (CFTC) due to gambling or public interest concerns.
partnered with KalshiEX, Robinhood appears to have addressed these concerns while remaining compliant with CFTC guidelines. Users engaging with the new platform will bear a fee of two cents per contract, with one cent going to Robinhood and the other to Kalshi.
Being in close communication with the CFTC, Robinhood has expressed a commitment to fostering innovation in futures, derivatives, and cryptocurrency markets. The rollout of Robinhood's prediction market hub signifies a significant stride for the brokerage as it ventures beyond traditional stock and crypto trading, and effectively signals growing mainstream acceptance of prediction markets as a financial tool.
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|Crypto News|💰💰💰||---|---||Robinhood's Prediction Markets Rise!|💰💰💰||New Horizons: Robinhood Prediction Markets Hub|💰💰💰||Celebrate Stupidity: Robinhood Launches March Madness Prediction Markets|💰💰💰||Kalshi'er Do Better? Robinhood, Kalshi Partner for Regulation-Compliant Prediction Markets|💰💰💰|
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Sources:
- Robinhood to launch prediction market platform
- Kalshi secures preliminary injunction against NJ DGE
- End of prohibition: What the rise of prediction markets means for businesses and individuals
- Prediction Markets Face Growing Regulatory Scrutiny
- Prediction Markets for Beginners: The State of the Art and Opportunities for Future Research
- Robinhood, following its collaboration with KalshiEX, is set to expand its platform beyond traditional crypto trading, venturing into the realm of prediction markets that focus on financial, sports, and political events, like the March Madness college basketball tournament and the Federal Reserve's interest rate decisions.
- As Robinhood delves into the broader world of prediction markets, users will encounter contracts not only related to cryptocurrency but also encompassing blockchain technology and sports events, potentially creating new avenues for investment and engagement within these domains.
