Published on: November 11, 2025, at 11:36 AM.
Updated on: November 11, 2025, at 11:47 AM.
- Brokerage firm announces discussions with leading prediction markets
- Highlights futures market growth as a foundation for event contracts
- Identifies connection between cryptocurrencies and prediction markets
eToro Group (NASDAQ: ETOR) appears poised to enter the prediction markets arena, having confirmed ongoing discussions with industry leaders Kalshi and Polymarket.
During the third-quarter earnings call on Monday, eToro co-founder and CEO Jonathan Assia revealed the company is engaging with Kalshi and Polymarket, the market leaders in prediction trading.
“We are in discussions with Kalshi and Polymarket, recognized leaders in the prediction market sector. We are thrilled about the possibility of allowing our users to trade prediction markets on financial events,” Assia commented in response to a question from Needham analyst John Todaro.
Assia further explained that eToro’s recent expansion into futures trading gives it the necessary framework to support prediction markets moving forward.
“Our launch of futures in Europe utilizes an infrastructure that will eventually allow us to trade prediction markets in the US,” Assia noted in a reply to TD Cowen analyst William Katz.
eToro: A Potential Key Player in Prediction Markets
The fintech space is witnessing numerous brokerage firms venturing into prediction markets. Crypto.com is among the earliest financial service providers in this sector, while estimates suggest Robinhood Markets (NASDAQ: HOOD) accounts for as much as 35% of Kalshi’s daily trading volume.
Additionally, CME Group (NASDAQ: CME) is collaborating with FanDuel on event contracts, and Intercontinental Exchange (NYSE: ICE) recently invested $2 billion in Polymarket.
Last week, Gemini Space Station (NASDAQ: GEMI), the cryptocurrency exchange owned by Cameron and Tyler Winklevoss, expressed interest in exploring prediction markets as well.
eToro stands to be a significant player in the prediction markets sphere. By the end of Q3, the company recorded 3.73 million funded accounts, marking a 16% increase year-on-year, while assets under management skyrocketed by 76% to $20.8 billion.
As of September 30, the brokerage held $1.2 billion in cash and cash equivalents, confirming that it possesses the financial resources needed for potential investment in prediction markets.
eToro’s Focus Beyond Sports Event Contracts
While eToro is enthusiastic about prediction markets, it is not overtly signaling readiness to engage in sports event contracts. This could be a prudent strategy, considering that sports derivatives have attracted legal and regulatory challenges for firms such as Kalshi.
“We are of the opinion that prediction markets concerning financial events, geopolitical situations, and economic developments hold significant value, offering our users insights into trading strategies or hedging possibilities,” Assia stated during the earnings call. “Initially, this is where our focus will be—to assist our customers in discovering financial opportunities tied to their portfolios.”
However, Assia clarified that eToro is excited about opportunities that lie at the intersection of cryptocurrency and prediction markets.
“Moreover, we are set to launch our crypto wallet, which will empower our clients to participate in on-chain prediction markets, such as poly-chain and others,” the executive disclosed.