Galaxy Digital launches OTC prediction markets for institutions
In brief
- Galaxy Digital (GLXY) launched OTC prediction markets for institutional investors Tuesday
- Firm completed $10 million trade with hedge fund Arca on CLARITY Act outcomes
- Offering covers non-sports event contracts via Kalshi and Polymarket platforms
Institutional Access to Event Markets
Galaxy's new service allows hedge funds, family offices and other institutional investors to trade contracts tied to political, economic and geopolitical events. Galaxy's offering initially covers non-sports event contracts traded on Kalshi and Polymarket, two platforms that have experienced rapid growth over the past two years.
The Arca trade demonstrates real demand for this infrastructure. Arca's chief investment officer noted that prediction markets offered an effective way to hedge exposure to ongoing crypto regulation negotiations in Washington, but liquidity constraints on existing platforms made it difficult for large investors to participate directly.
Why Prediction Markets Matter
Prediction markets have gained traction among investors seeking ways to express views on real-world events ranging from elections and central bank decisions to regulatory developments. Galaxy's move reflects growing appetite for these instruments among sophisticated investors.
Jason Urban, Galaxy's global co-head of digital assets, said the company sees institutional infrastructure as essential to this market's maturation.
"Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match"
Galaxy shares were down 6% on Tuesday, in line with the broader crypto stock market. The New York-based firm provides institutional digital asset trading, asset management, staking and tokenization services.
