Robinhood Derivatives LLC announced a new trading option, allowing select US customers to speculate on “who will win the 2024 presidential election”.
The platform has created contracts, notably for Donald Trump and Kamala Harris, whose exchanges will begin on October 28. These event-based contracts, which Robinhood sees as a means of real-time engagement, allow users to trade election results and engage in political decisions. -manufacturing.
However, the platform clarified that trades would be made in fiat currency, with no crypto deposits or funding options available for these contracts.
The move shows Robinhood’s interest in event-based trading, which is expected to gain popularity in 2024 as people become more interested in alternative data sources and real-time social sentiment indicators.
Platforms such as Polymarket and Kalshi have already carved out significant market shares, with Polymarket processing over $2.3 billion in event contracts. Polymarket, although unavailable to US users, has a 99% share of the prediction market.
Meanwhile, Kalshi, a regulated exchange based in Manhattan, has hinted that it will expand its offering to accept cryptocurrency deposits, although it is now moving to fiat currency, similar to Robinhood.
Robinhood’s entry into this space reflects a long-standing American fascination with election betting. Historical betting on presidential outcomes dates back to the late 19th and early 20th centuries, with New York newspapers publishing odds daily during election cycles.
Now, blockchain-based platforms like Polymarket are carrying this tradition into the digital age, although Robinhood’s fiat-only model sets it apart from these crypto-based competitors.
Demand for event-driven contracts in 2024 has driven significant growth, with the industry seeing a 500% increase in trading volume over the past year, according to CoinGecko.
