Prediction Markets Poised for Mainstream Adoption, Bernstein Reports
Prediction markets are emerging as a viable asset class, with Bernstein analysts highlighting their potential for mainstream adoption. Regulatory approvals have already positioned these markets for retail integration through finance apps, potentially filling the void left by declining crypto volumes.
Kalshi and Polymarket lead the charge, transforming prediction markets from niche applications into accessible financial tools. 'By letting markets decide probabilities for key events, more mainstream investors can factor these information signals into their portfolios,' Bernstein noted.
The U.S. market's relaxed regulatory landscape has been a key driver, avoiding gambling-related restrictions. Partnerships and retail integrations could further accelerate adoption, with platforms like Robinhood likely beneficiaries.
