Robinhood Launches Prediction Markets Hub for Trading Events

Robinhood has expanded its app with a new prediction markets hub, offering users the ability to trade on the outcomes of various events. The first contracts, launched on Monday, March 17, cover predictions for the upper bound of the target Fed funds rate in May, as well as the outcomes of the upcoming men‘s and women’s college basketball tournaments.

This new feature, available in the U.S. through Kalshi, a Commodity Futures Trading Commission (CFTC)-regulated exchange, opens up an entirely new avenue for trading. In addition to sports predictions, Robinhood is collaborating with the CFTC on initiatives involving futures, derivatives, and crypto markets.

“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, Robinhoods VP of Futures and International. He also mentioned their excitement to offer this service while ensuring compliance with current regulations.

Robinhood has seen significant growth, with 26.2 million accounts as of the fourth quarter of 2024, marking a 236% increase in transaction-based revenues year-over-year. The company is focused on increasing the wallet share of current users while also attracting new ones to its platform.

Robinhood has also rolled out other features, such as the Robinhood Legend desktop offering, and announced upcoming tools like index options, futures, and a realized profit and loss tool. Additionally, the company launched a Presidential Election Market earlier this year, continuing to build momentum.

Crypto.com has similarly entered the prediction market space, launching a sports event trading product in December that allows users to predict the outcomes of sporting events through its app. With these developments, prediction markets are becoming an increasingly popular feature for trading platforms, opening new opportunities for both casual and seasoned traders.