Prediction Markets Shift Towards Institutional Use After Kalshi's First Block Trade

Prediction markets are increasingly being adopted by institutional players, according to Bernstein. This shift follows Kalshi's execution of its first bespoke institutional block trade last week. According to NS3.AI, the transaction was facilitated by Greenlight Commodities, involving a Houston, Texas-based environmental hedge fund and Jump Trading, centered around California's May carbon allowance auction. Bernstein highlighted that Clear Street's collaboration with Kalshi provides institutions with a regulated avenue to engage in event contract trading.