Robinhood Stock Rises Following Deal That Could Boost Its Prediction Market Push
The post Robinhood Stock Rises Following Deal That Could Boost Its Prediction Market Push appeared on BitcoinEthereumNews.com.
In brief Trading app Robinhood has acquired a 90% stake in derivatives exchange LedgerX, in partnership with Susquehanna International Group. Research firm Bernstein believes the acquisition is a move by Robinhood to launch its own prediction market platform, alongside the Kalshi-powered “events contracts” it already offers. As a result, shares of HOOD have risen 8% on Wednesday as the firm inches closer to its September all-time high. Robinhood may be making a push towards launching its own dedicated prediction market platform, acquiring a 90% stake in derivatives exchange LedgerX, which was previously owned by the now-defunct FTX. In response, the shares of HOOD have climbed more than 8% to $125 since Wednesday’s market open, according to Yahoo Finance. “Robinhood is seeing strong customer demand for prediction markets, and we’re excited to build on that momentum,” said JB Mackenzie, VP and general manager of futures and international at Robinhood, in a statement. “Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.” The popular trading app partnered with prediction market Kalshi in the summer to start offering what it brands as “event contracts,” which its CEO Vlad Tenev said were “really on fire” in a recent earnings call. However, research firm Bernstein believes the acquisition of LedgerX, which does business under the name MIAX, is a move by Robinhood to launch its own event contracts alongside the Kalshi-powered offerings. “With HOOD already accounting for more than 50% of Kalshi market volumes, we believe, HOOD wants to leverage its distribution edge to claim a higher share of the market revenue pool,” Bernstein analysts said in a note shared with Decrypt. “By adding its own prediction markets liquidity, HOOD can innovate further on product mix leading to more revenue upside from both growing…
