CEO highlights $4 billion in contracts as platform expands beyond traditional trading
Robinhood Markets (HOOD) shares jumped more than 12% Monday after CEO Vladimir Tenev announced strong momentum in prediction markets, an emerging sector where participants wager on elections, sports, and other widely watched events.
In a post on X, Tenev said Robinhood customers have transacted more than $4 billion worth of event contracts, with $2 billion occurring in the third quarter alone. The surge highlights how prediction markets, once niche, are becoming a mainstream revenue driver for the brokerage.
The trend gained prominence during the 2024 U.S. presidential election, when platforms like Kalshi and Polymarket saw millions in wagers. Robinhood has seized the opportunity by offering prediction-market trading through a partnership with Kalshi, which is regulated by the U.S. Commodity Futures Trading Commission. In August, Robinhood further expanded into pro and college football contracts.
The news pushed Robinhood stock to a record high, capping a more than 260% gain year-to-date. The company was also recently added to the S&P 500 Index, reflecting its growing market significance.
While Robinhood remains best known for stock, options, and cryptocurrency trading, its rapid expansion into prediction markets underscores its push to diversify and capture new avenues of growth.
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