Prediction Markets Pivot Toward Institutional Growth
Platforms like Kalshi and Polymarket are courting hedge funds and asset managers to expand beyond retail trading. While institutional volumes have grown significantly over the past six months, analysts warn that market liquidity must improve to support the large block trades required by major financial firms.
Prediction market Kalshi increased institutional trading volumes 800% over the last six months as it targets hedge funds for large-scale block trades. Annualized trading volumes on the platform have more than tripled from a baseline of $52 billion to $178 billion during the same period. Institutional adoption allows firms to hedge specific economic risks, such as monthly payroll data, with greater precision than traditional derivatives.










