Robinhood moves into prediction markets with FTX-linked acquisition: Report
Analysis
Price Impact
MedRobinhood, a major traditional finance platform, entering prediction markets with an ftx-linked acquisition (ledgerx/miaxdx) signals growing institutional interest and mainstream validation for crypto-adjacent financial products. this could attract new users and capital to the broader crypto ecosystem.
Trustworthiness
HighThe report is from cointelegraph, citing reuters and robinhood's own announcements, providing highly reliable information about the acquisition and platform launch.
Price Direction
BullishIncreased participation from a significant traditional brokerage firm like robinhood in crypto-related financial services is generally positive for overall market sentiment and adoption, even if not immediately reflected in specific coin prices. it legitimizes the space.
Time Effect
LongWhile there might be an immediate positive sentiment, the full impact of robinhood's expansion into prediction markets, attracting new users and capital, will likely be a gradual, long-term driver for crypto adoption and market growth.
Original Article:
Article Content:
Turner Wright 3 minutes ago Robinhood moves into prediction markets with FTX-linked acquisition: Report The deal for FTX-linked MIAXdx puts Robinhood and Susquehanna in direct competition with Kalshi and Polymarket as interest in prediction markets heats up. Listen 0:00 24 News COINTELEGRAPH IN YOUR SOCIAL FEED A company with ties to the defunct cryptocurrency exchange FTX is reportedly being acquired by Robinhood Markets and Susquehanna International Group as part of a push into prediction markets. According to a Reuters report on Tuesday, Robinhood and Susquehanna will acquire a 90% stake in LedgerX, one of the few solvent companies tied to FTX following its bankruptcy filing in 2022. The reported move came just hours after Robinhood announced the launch of a futures and derivatives platform with options for prediction markets. Robinhood initially reported the acquisition of a majority stake in MIAXdx, an exchange and clearinghouse licensed by the US Commodity Futures Trading Commission. MIAXdx, previously known as LedgerX, was acquired by Miami International Holdings (MIAX) for $50 million in 2023 amid FTX’s bankruptcy. MIAX will retain a 10% stake in the firm, according to Reuters. “Through our retained equity stake, the transaction announced today will provide MIAX with access to the growing prediction markets on an expedited basis,” said MIAX CEO and chair Thomas Gallagher. Related: UFC taps Polymarket to add betting signals for live fight coverage The acquisition could put Robinhood in a position to challenge large prediction platforms such as Kalshi and Polymarket. Prediction markets surged significantly in 2024 , driven partially by interest in bets on US elections. Not the only game in town Since a federal court cleared the way for Kalshi to offer event contracts tied to US elections in October 2024, the market has seen significant investments from companies in and out of the crypto industry. Kalshi reportedly increased its valuation to $11 billion last week after a funding round led by Sequoia Capital and CapitalG. Polymarket also scored a regulatory win on Tuesday, with the CFTC approving the company to operate a US-intermediated trading platform. Cryptocurrency exchange Coinbase is also reportedly working on a prediction markets platform backed by Kalshi. Shares of Robinhood on the Nasdaq surged about 8% in the hours following the announcement, reaching $125.24 at the time of publication. Magazine: Getting scammed for 100 Bitcoin led Sunny Lu to create VeChain # Business # LedgerX # Predictions # Robinhood # FTX Add reaction