Prediction Markets Are Quietly Turning Into a New Asset Class, Citizens Says
Citizens bank reports that prediction markets, with $10 billion in monthly volume, are emerging as a new asset class growing beyond sports.Summary
U.S. bank Citizens states that prediction markets are rapidly evolving into an emerging asset class, generating around $10 billion in monthly volume, despite being small compared to the $10 trillion U.S. equity market. These markets address a flaw in traditional finance by allowing direct trading on events like inflation or Fed decisions, rather than relying on proxies. Analysts suggest that as platforms like Robinhood, Kalshi, and Polymarket scale, and with Robinhood's acquisition of MIAX's derivatives exchange, event contracts will bridge retail and institutional liquidity. While regulatory uncertainty remains, these markets have proven more responsive than polls around elections and Bitcoin ETF approvals. The bank anticipates institutional adoption will increase, leading to a potential multitrillion-dollar annual market used for hedging, speculation, and corporate planning by hedge funds, macro funds, and quant firms.
(Source：CoinDesk)