Robinhood launches presidential election betting, shares rise 4%
Key receivers
Robinhood stock rose 4% after announcing its options trading feature. In Q3, the size of the political prediction market increased by 565%.
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Shares of Robin Hood Markets ( HOOD ) rose nearly 4 percent to $28 after the U.S. open on Monday, according to Yahoo Finance data. This increase follows the company's unveiling of its new political prediction market, which allows trading on the outcome of the upcoming US presidential election.
The launch comes eight days before the election, allowing users to trade contracts for candidates Kamala Harris and Donald Trump through Robinhood Derivatives unit in partnership with Interactive Brokers' ForecastEx.
Initially for a select group of customers, applicants must meet certain requirements, including US citizenship, to participate. The new offering follows Robinhood's recent expansion into 24/5 trading and its commitment to providing real-time market access to futures trading.
Prediction markets have shown impressive growth in the third quarter of this year, with betting volume increasing by about 565%, to a total of $3.1 billion, According to a recent CoinGecko report. The biggest pressure is mainly due to the highly anticipated US presidential election, especially the impact on crypto regulations following a key event.
Polymarket, the leading decentralized platform, with a market share of more than 99%, has deployed $1.7 billion on the “Winner of the US Presidential Election”, representing 46% of its annual volume.
As of October 27, Polymarket's total value stood at $302 million, up nearly 140% from the previous month.
In addition to Robinhood, Wintermutt is another entity that aims to capitalize on the growing demand for prediction markets. Wintermute last month plans to launch a new prediction market called “Outcome Market” that will also focus on the upcoming US presidential election.
As stated, OutcomeMarket will be a multi-chain platform that allows users to trade contracts. of Election results for candidates Donald Trump and Kamala Harris. The platform is expected to introduce two tradable tokens, TRUMP and HARRIS dApps as well centralized exchanges.
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