Novo Nordisk, Eli Lilly fall after Trump comments on weight loss drug pricing
Investing.com -- Robinhood Markets is considering potential acquisitions in the prediction markets sector, a company executive told Reuters on Monday, as this once-niche asset class gains popularity worldwide.
"We as a firm are going to be looking to see if there is an acquisition that’s available," said JB Mackenzie, vice president and general manager of futures and international at Robinhood. "That being said, what we also know is we have really good engineers that build great products here. So what we’re going to do is try to balance the two."
Prediction markets gained significant traction during the 2024 U.S. presidential election and have since expanded to allow investors to place wagers on various outcomes from monetary policy decisions to major sporting events.
These wagers take the form of event contracts, which pay out if a specific outcome occurs or expire worthless if it does not.
The growing sector has attracted startups like Underdog, which introduced event contracts in September for customers to profit from their views on sporting leagues.
NYSE-owner Intercontinental Exchange demonstrated its interest in the space last week by taking a $2 billion stake in Polymarket.
Robinhood launched its own hub for trading event contracts in March through partnerships with prediction marketplace Kalshi, which reached a $5 billion valuation in its latest funding round, and Interactive Brokers Group’s ForecastEx.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.