What is Robinhood acquiring?

Robinhood is acquiring 90% of MIAX Derivatives Exchange.

Why is Robinhood investing in prediction markets?

Robinhood is strategically expanding its presence in the growing prediction markets business.

What is MIAX Derivatives Exchange?

MIAX Derivatives Exchange operates LedgerX, a CFTC-regulated derivatives exchange.

Home / Business and Economy / Robinhood Bets Big on Prediction Markets

Robinhood Bets Big on Prediction Markets

28 Nov

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Summary

Robinhood is acquiring 90% of MIAX Derivatives Exchange.
This move signifies Robinhood's strategic push into prediction markets.
MIAX owns LedgerX, a CFTC-regulated derivatives exchange.

Robinhood Bets Big on Prediction Markets

Robinhood, a prominent trading platform, has announced its intention to acquire 90% of MIAX Derivatives Exchange, signaling a major strategic push into the rapidly expanding prediction markets sector. This move is being undertaken in conjunction with Susquehanna International Group, led by Jeff Yass, further emphasizing the burgeoning potential of this market.

MIAX Derivatives Exchange is notably the owner of LedgerX, a derivatives exchange regulated by the CFTC, which it previously acquired from FTX. Robinhood's investment aims to leverage MIAX's existing infrastructure and regulatory standing to accelerate its presence and offerings in the prediction markets.

This expansion is projected to enhance Robinhood's product diversification, potentially boosting trading volumes and revenue capture. Industry analysts view this development as a key indicator of the growing significance of prediction markets within the broader financial technology landscape, with potential implications for competitors.