Robinhood CEO Predicts Crypto Contracts Will Overtake Sports in Prediction Markets

Robinhood’s chief executive Vlad Tenev told Jim Cramer that crypto‑based prediction contracts are already capturing a disproportionate share of the firm’s event‑contract volume and that, within a few years, sports contracts could become a minority.

Rapid growth of crypto event contracts

Event‑contract revenue rose more than tenfold year‑over‑year to $156 million in the second quarter, making it Robinhood’s fastest‑growing line of business. In August, contracts were traded 4.7 billion times, roughly 15 times the volume recorded a year earlier.

Strategic partnerships and licensing

Robinhood’s prediction‑market offering now rests on three pillars:

• Kalshi, the original partner for sports and other event contracts.
• Rothera, a CFTC‑licensed joint venture with Susquehanna.
• Minority stakes in Crypto.com and its prediction‑market spin‑off OG.com, adding a third clearing and settlement partner.

Legal landscape favors crypto contracts

Sports contracts face regulatory uncertainty after a Ninth Circuit ruling allowed Nevada to regulate Kalshi’s sports offerings, while New Jersey seeks Supreme Court clarification. Crypto contracts are not subject to the same gambling classifications, giving Robinhood a more secure legal footing as it shifts the mix toward digital‑asset predictions.

Market context

Bitcoin rallied to an eight‑month high near $86,000, with $433 million net inflows into Bitcoin ETFs on the day of reporting. The broader crypto market showed modest gains, while altcoins such as PEPE (+18%) and NEAR (+11%) posted notable upside.