DRW, Wintermute Enter Prediction Markets as Institutional Capital Flows In
Summary
- DRW has recently begun building a dedicated trading desk for prediction markets.
- Polymarket said it recorded as much as $40 billion in trading volume last year across political, economic and sports markets.
- Trading volume in markets predicting the winners of the UEFA Champions League, NBA and NHL alone recently topped $700 million.
Forecast Trend Report by Period
Large quant trading firms are moving into prediction markets such as Polymarket and Kalshi.
CoinDesk reported on June 6 that DRW has begun building a dedicated trading desk for prediction markets. Crypto market maker Wintermute and IMC are also hiring for related roles.
Institutions are taking notice as volumes surge. Polymarket recorded as much as $40 billion in trading volume last year across political, economic and sports markets. More recently, trading in markets predicting the winners of the UEFA Champions League, NBA and NHL alone topped $700 million.
The firms are reportedly seeking arbitrage opportunities created by price differences between platforms, rather than trying to predict the outcomes of games or elections themselves. As the market expands, quant trading strategies long used in traditional finance are spreading into prediction markets.
Uk Jin
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