Prediction markets have grown in popularity among investors, spurred on by the surge of wagers ahead of the November U.S. presidential race where Robinhood customers could bet on election outcomes. Last month, the company rolled out — and then quickly rescinded — sports-event contracts, with the Super Bowl specifically in mind.
This hub, launching Monday according to a statement, will first facilitate bets for what the upper bound of the federal funds rate will be in May and outcomes of the upcoming March Madness college basketball tournaments.
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"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," JB Mackenzie, vice president and general manager of futures and international at Robinhood, said in the statement.
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The prediction markets hub will be available through Kalshi, the regulated exchange that's drawn formal questioning from the Commodity Futures Trading Commission over how its sports-event contracts are in legal compliance.
"We have been in close contact with the CFTC over the past several weeks and look forward to continuing to work with them to promote innovation in the futures, derivatives and crypto markets," Robinhood said.
