Robinhood Markets Inc.’s prediction markets business is the fastest growing in the firm’s history, chief executive Vlad Tenev said.
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“Prediction markets have been growing consistently since March,” Tenev said in a Bloomberg TV interview Thursday. “We expect it to continue to be strong.”
Robinhood on Wednesday reported second-quarter results that showed revenue from prediction markets eclipsed what the online brokerage brought in from cryptocurrency trading as the value of digital assets slumped.
Prediction-markets revenue climbed 10-fold from a year earlier to US$156 million, compared with US$100 million from crypto, the Menlo Park, California-based company said Wednesday in a statement.
Prediction markets have drawn customers to exchanges such as Robinhood and Coinbase Global Inc. as crypto trading has declined, with Bitcoin dropping toward its lowest price in two years. The FIFA World Cup, which began three weeks before the end of the quarter, was a boon for prediction markets and a testing ground for Rothera, the derivatives exchange that Robinhood owns along with Susquehanna International Group.
Rothera has become one of the three largest designated contract markets, Tenev said on a call with analysts Wednesday.
—With assistance from Emily Graffeo and Romaine Bostick.
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Source: Financial Post
