Kalshi Doubles Valuation to $22 Billion Amid Institutional Boom
U.S. prediction market platform Kalshi has officially doubled its valuation to $22 billion after securing a massive $1 billion funding round. The fresh capital injection from top Wall Street and Silicon Valley firms underscores a booming retail and institutional appetite for regulated event contracts. According to CoinDesk, Kalshi's institutional trading volume has surged by an impressive 800% over the past six months, pushing annualized trading activity on the platform to $178 billion despite growing regulatory scrutiny.
Institutional Era Begins as SEC Delays Prediction Market ETFs
The blockbuster raise aligns with a broader industry shift toward institutional adoption. A recent report from Bernstein notes that prediction markets are officially entering their institutional era, driven by the introduction of block trades, custom contracts, and evolving U.S. regulatory frameworks. However, this institutional push is facing headwinds in traditional finance. The U.S. Securities and Exchange Commission (SEC) has reportedly delayed several prediction market ETFs. The regulator is demanding more information from issuers including Roundhill, GraniteShares, and Bitwise regarding the mechanics and risk management of these proposed event contract funds.
Dutch Traders Pivot Following Polymarket Ban
While U.S. regulators scrutinize ETF wrappers, European markets are experiencing their own regulatory shifts. Following a February ban on Polymarket in the Netherlands, Dutch traders are actively migrating to alternative platforms. According to Cointelegraph, users in the region are now utilizing platforms like Kalshi, Hyperliquid, and Interactive Brokers to maintain access to prediction markets. For traders navigating these changing jurisdictional rules, utilizing comprehensive prediction market tools is becoming increasingly essential to track volume and platform availability.
CME Group Expands Volatility Offerings
Further bridging the gap between traditional finance and crypto-native volatility, the CME Group announced plans to launch Bitcoin Volatility Futures on June 1, offering institutions yet another avenue to hedge against market-moving events alongside the booming prediction market sector.