economy
Individual traders drove Kalshi’s rise. Now, it’s going for Wall Street
In a series of moves in 2026, the prediction market platform in the U.S. is working to make its event contracts more attractive to institutional trading.
TL;DR
- Kalshi processed a record $17 billion in trading contracts in May, a 2500% increase year-over-year.
- The company is shifting its focus from individual traders to institutional adoption in 2026.
- Institutional interest is driven by the hedging capabilities of prediction market contracts.
- Kalshi has implemented strategies such as partnerships with brokerage platforms and risk-monitoring companies.
- The platform completed its first block trade on a prediction market in April, involving a Texas environmental hedge fund.
- Some industry players, like Charles Schwab's CEO, have not seen high demand for prediction markets from their clients.
- Concerns exist about transaction fees potentially limiting returns for large investors, though Kalshi offers fee waivers for large block trades.
- Kalshi believes institutional trading will increase market liquidity, ultimately benefiting retail traders.