Robinhood Inventory Rises Following Deal That May Enhance Its Prediction Market Push – Decrypt

Robinhood could also be making a push in direction of launching its personal devoted prediction market platform, buying a 90% stake in derivatives change LedgerX, which was beforehand owned by the now-defunct FTX.

In response, the shares of HOOD have climbed greater than 8% to $125 since Wednesday’s market open, in keeping with Yahoo Finance.

“Robinhood is seeing sturdy buyer demand for prediction markets, and we’re excited to construct on that momentum,” stated JB Mackenzie, VP and normal supervisor of futures and worldwide at Robinhood, in an announcement. “Our funding in infrastructure will place us to ship a good higher expertise and extra progressive merchandise for purchasers.”

The favored buying and selling app partnered with prediction market Kalshi in the summertime to start out providing what it manufacturers as “occasion contracts,” which its CEO Vlad Tenev stated have been “actually on hearth” in a current earnings name.

Nevertheless, analysis agency Bernstein believes the acquisition of LedgerX, which does enterprise underneath the identify MIAX, is a transfer by Robinhood to launch its personal occasion contracts alongside the Kalshi-powered choices.

“With HOOD already accounting for greater than 50% of Kalshi market volumes, we imagine, HOOD desires to leverage its distribution edge to say a better share of the market income pool,” Bernstein analysts stated in a be aware shared with Decrypt.

“By including its personal prediction markets liquidity, HOOD can innovate additional on product combine resulting in extra income upside from each rising volumes and take-rate,” the analysts added. “We imagine HOOD will proceed distributing Kalshi merchandise, however will complement extra occasion contracts straight.”

Robinhood, in partnership with Susquehanna Worldwide Group, acquired its 90% stake from Miami Worldwide Holdings for an undisclosed charge. Miami Worldwide Holdings will retain the remaining 10% of fairness. The transaction is predicted to shut within the first quarter of 2026. 

MIAX has regulatory approval from the Commodity Futures Buying and selling Fee (CFTC) to listing and clear absolutely collateralized futures and choices on futures and swaps. The agency hopes the acquisition will see it push into the world of prediction markets.

“The transaction introduced right this moment will present MIAX with entry to the rising prediction markets on an expedited foundation,” Thomas P. Gallagher, chairman and CEO of MIAX, stated in a late Wednesday launch. “We’ve evaluated alternate options to facilitate our entry to the prediction markets, and we imagine that right this moment’s strategic alignment is the precise lever for providing institutional and retail futures merchants publicity within the rising prediction markets whereas offering MIAX with potential long-term worth.”

HOOD inventory has risen greater than 8% to $125 following the announcement, because it inches nearer to its all-time excessive of $153 set in September as Robinhood regarded to develop its prediction market choices exterior of the U.S.