Bernstein Sees Prediction Markets Go Institutional After First Block Trade
Bernstein analysts report that prediction markets are transitioning toward institutional adoption following the first successful bespoke block trade on the exchange Kalshi.Summary
A recent Bernstein report suggests that prediction markets are evolving into institutional-grade financial tools, enabling investors to hedge against macro risks like elections and geopolitical events. The shift follows a significant milestone: the first institutional block trade on Kalshi, involving Greenlight Commodities, an environmental hedge fund, and Jump Trading. By utilizing bespoke contracts and regulated access points like Clear Street, these markets are becoming more accessible to institutional capital. While retail users currently account for over 80% of volume, Bernstein projects that increased institutional participation could help the sector reach a trillion-dollar valuation by the end of the decade, supported by growing regulatory clarity in the United States.
(Source：Cointelegraph)