Bernstein: Coinbase and Robinhood Prediction Market Revenue Set to Grow

Robinhood describes prediction markets as its fastest growing business line so far. Bernstein analyst Gautam Chhugani said revenue from this area is expected to reach $1.7 billion in 2028, slightly more than the $1.6 billion expected from cryptocurrency trading.

Chhugani raised his revenue forecasts for Robinhood for 2026, 2027 and 2028 by 3 to 4 percent. According to him, event contracts will earn the company about $650 million this year, and this figure will more than double by 2028. Robinhood will announce its third quarter results on October 27.

A similar picture is emerging for Coinbase. According to the analyst, the revenue the company will earn from event contracts and derivatives could reach $2 billion in 2028. This is more than three times the $600 million in revenue expected this year.

The real goal of these companies is not just to operate a betting platform. According to officials, prediction markets are seen as a tool for acquiring customers. Some investors who start with yes or no derivatives eventually open options, futures and even retirement accounts. This means a lasting, long term customer relationship.