On March 12, news reports indicate that as prediction markets have rapidly developed over the past year, several major U.S. brokerages are pushing Wall Street funds into this sector. According to media reports, financial institutions such as Clear Street and Marex Group Plc, which provide services to hedge funds, plan to allow clients to participate in event trading on the prediction market platform Kalshi. This move is seen as an important step for institutional capital to enter the prediction market.
Clear Street CEO Ed Tilly stated that the company expects to complete its first Kalshi-related transaction settlement by the end of March. The firm is currently valued at over $12 billion. Meanwhile, Marex Group, valued at approximately $2.6 billion, also plans to open similar services to clients in the coming months. Thomas Texier, Head of Global Clearing at Marex, noted that several large hedge funds have recently been actively consulting on ways to access prediction markets, hoping to use these markets for risk hedging and strategic trading.
Kalshi CEO Tarek Mansour believes that by 2026, institutional adoption of prediction markets will increase significantly. He stated that these markets not only provide investors with insights into the probabilities of future events but also serve as tools for risk management and yield strategies. Currently, several mainstream media outlets have begun citing Kalshi market data alongside traditional financial market quotes, indicating its growing influence.
However, prediction markets remain in a regulatory gray area. Clear Street management has stated that they will remain cautious before officially expanding their business. The main controversies facing the industry include whether sports-related markets constitute legal gambling and whether broad event markets could involve insider trading risks.
Meanwhile, U.S. financial regulators are also discussing regulatory frameworks for this sector. The Commodity Futures Trading Commission (CFTC) believes it has primary oversight authority, while the Securities and Exchange Commission (SEC) has indicated it will play a role in relevant market rules. Nasdaq CEO Adena Friedman recently stated that clear and unified regulatory rules will help protect investors and promote healthy development of prediction markets. Industry experts generally believe that once regulatory clarity is achieved, prediction markets could become a new growth track for Wall Street.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Kalshi Traders Forecast XRP to Hit $1.60 in April
Kalshi traders predict XRP will reach $1.60 in April amid rising demand and significant ETF inflows. With a bullish technical outlook and upcoming regulatory votes, XRP's market dynamics show potential for further gains, despite risks of declining support levels if outcomes are unfavorable.
CryptoFrontier1h ago
Premier League Tottenham vs Brighton is a crucial matchup, with Polymarket forecasting a 50% chance that Tottenham will be relegated
Tottenham Hotspur this season has surged from Europa League champions all the way to the relegation zone, facing a relegation battle. In the 14 matches without a win, the team has been hit by a series of injuries and a change in head coach, and an ESPN report says that poor passing ability is a key factor. Sunday’s match against Brighton will be a do-or-die game for survival; if they lose, it will seriously affect morale and the standings. Successful survival requires three major conditions, and for a former “pyramid” club, relegation will inevitably cause a major loss.
ChainNewsAbmedia6h ago
Hong Kong SFC Investment Committee Warns Prediction Market Trading May Constitute Illegal Gambling
The Hong Kong SFC warns that prediction markets are speculative and not investment products, lacking regulatory protection. They involve gambling elements, potentially making them illegal. The committee urges the public to differentiate between investment and gambling.
GateNews9h ago
Prediction Markets Show Stark Wealth Concentration: 84% of Traders Lose Money
Prediction markets show stark wealth concentration, with 84.1% of Polymarket traders losing money, while just 0.04% hold over 70% of profits. Legislative efforts like the BETS OFF Act aim to regulate betting on sensitive events, as concerns rise over user protections amid the entry of major financial institutions.
GateNews17h ago
DAZN Partners with ADI Predictstreet to Launch Blockchain Prediction Market for 2026 World Cup
DAZN partners with ADI Predictstreet to introduce a blockchain prediction market for the 2026 FIFA World Cup. Users can engage in real-time predictions, utilizing advanced technology for privacy and scalability, despite regulatory challenges in Europe.
GateNews22h ago
Hong Kong Suspends Basketball Betting Project Amid Concerns Over Prediction Markets and Illegal Gambling
Hong Kong's government has suspended its basketball betting project due to concerns over the rapid growth of prediction markets linked to illegal gambling. With monthly trading volumes rising dramatically, authorities aim to enhance public education and collaborate on measures against gambling.
GateNews04-17 08:01
