Robinhood launches a prediction market: possible competition with Polymarket?

Robinhood, a well-known trading platform, has announced the launch of a prediction market based on real events, similar to Polymarket, thus expanding its range of financial services.

This new feature will be available through the Kalshi exchange, regulated by the Commodity Futures Trading Commission (CFTC.  

Robinhood’s vision in the project similar to Polymarket

The initiative by Robinhood comes following the success of the platform based on criptovalute Polymarket, which experienced exponential growth during the latest presidential elections in the United States.

In the electoral period alone, users placed bets for over 3.6 billion dollars, attracting the attention of the financial sector and the regulatory authorities.

This popularity has also raised doubts about the influence of prediction platforms on electoral outcomes. Some experts have questioned the identity of the bettors and the potential impact of such platforms on the vote. 

Furthermore, the CEO of Polymarket, Shayne Coplan, underwent an investigation by the FBI, which seized his electronic devices during a search of his residence in New York.  

Robinhood has stated that it is in contact with the CFTC, the sector’s regulatory body, to ensure that the new service complies with current regulations.  

JB Mackenzie, vice president and general manager of Futures and International at Robinhood, expressed the belief that prediction markets play a crucial role in connecting news, economy, politics, sports, and culture. 

This initiative aims to leverage the growing interest of investors in bets based on future events, introducing a new dynamic in the online trading landscape.  

Bets on economy and sports  

The Robinhood prediction market will allow users to place bets on a variety of events, including:  

• – The decisions of the Federal Reserve regarding interest rates, with particular attention to the changes expected for May.  
• – The NCAA college basketball tournaments, for both the men’s and women’s categories, in a context of growing interest in sporting events.  

These contracts will be available starting today, offering users new opportunities for investment and speculation.  

The announcement of the new feature had a positive impact on the value of Robinhood shares, which increased by 2.3%, reaching 40.17 dollars on Monday.  

This result reflects the optimism of investors for the diversification of the company’s offerings, a sign of a strategy aimed at consolidating its position in the financial sector.  

 An impact on the bull market

With the launch of the prediction market, Robinhood positions itself as a direct competitor to Polymarket, seeking to attract users interested in betting on economic and sports events. 

The introduction of this feature confirms the evolution of the online trading sector, increasingly integrated with innovative tools and based on real data.  

The initiative could indeed redefine the concept of traditional investment, pushing more and more operators to explore new forms of regulated speculation.