Published on: April 14, 2026, 11:30 AM.
Updated on: April 14, 2026, 11:30 AM.
- Research firm identifies two brokerage firms as top public investment options for accessing prediction markets.
- Prediction markets represent Robinhood’s most rapidly expanding business segment to date.
- Event contracts resemble crypto and equity trading, with these firms being key players.
According to Cantor Fitzgerald, Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD) are leading contenders in the public market surge related to prediction markets.
In a recent analysis, Cantor Fitzgerald analyst Ramsey El-Assal emphasizes the rapid proliferation of yes/no exchanges, highlighting that the volume of event contracts is on an upward trajectory. Robinhood has already declared prediction markets as its swiftest-growing venture in its history. Both platforms enjoy a substantial customer base, with many users evidently enthusiastic about prediction markets.
Encouragingly for the stakeholders of Coinbase and Robinhood, El-Assal perceives openings for prediction markets to capture the interest of institutional investors, lending greater legitimacy while dispelling the notion that event contracts are merely sophisticated sports betting.
“Prediction markets are set to become a versatile instrument for institutional investors,” notes the analyst.
Sports trading does generate excitement and volume for prediction markets, yet there is growing belief that these platforms could attract institutional investors searching for hedging strategies, risk management tools, and trading options in relation to specific events like economic data releases.
Coinbase and Robinhood Hold Key Advantages in Prediction Markets
Coinbase has recently entered the prediction market arena through a collaboration with Kalshi, while Robinhood has an existing relationship with Kalshi, though signs suggest a more independent direction for Robinhood in the prediction market space.
Nonetheless, both brokerage firms are well-positioned to attract market participants interested in prediction markets. While the valuations of Kalshi and Polymarket are climbing, these entities remain private. With numerous unicorns across various sectors staying closely held to amplify their valuations, public investors may have to wait before gaining access to the leading operators in the prediction market domain. Coinbase and Robinhood serve that urgent need.
Both financial firms offer additional advantages. As pointed out by Cantor’s El-Assal, Coinbase and Robinhood are already recognized brands among retail investors and possess the necessary infrastructure and technology to scale quickly in the event contracts market.
Furthermore, it’s reasonable to assert that many retail clients of Coinbase and Robinhood are either active sports bettors or at least have an interest in betting or prediction markets.
Analysts Clarify that Prediction Markets Are Not Gambling
While sports event contracts are significant volume contributors for Kalshi—particularly evident during high-profile events like the Masters—El-Assal argues that it’s a misconception to label yes/no exchanges as mere betting disguised as trading.
“Many people mistakenly view prediction markets as disguised gambling platforms,” states the analyst.
Industry advocates highlight a fundamental difference between prediction markets and sports betting. In prediction markets, participants compete against one another, whereas in sports betting, they wager against the house. This model is advantageous for companies like Coinbase and Robinhood, as they generate revenue through fees, rendering them less susceptible to fluctuations in customer-friendly outcomes—a challenge that has historically affected conventional sportsbooks.