Robinhood Sees Growth in Crypto and Commodity Predictions

Robinhood Markets is quickly becoming a standout in the prediction market sector. The company's growth in this area is not based on sports contracts alone.

Data shows that sports event contracts continue to account for the bulk of trading volume on yes-no exchanges. Robinhood, however, is also gaining ground in prominent non-sports categories such as cryptocurrencies and commodities.

JB Mackenzie, Robinhood's deputy general manager for futures and prediction markets, said at the NEXTPredict Summit in New York that contracts based on price volatility are gaining weight in the market. Mackenzie noted that Bitcoin, crude oil and gold contracts are the fastest-growing products on the platform.

Time intervals for crypto contracts are also getting shorter. Mackenzie explained that these contracts were first offered with a one-week window, then a one-day window, and are now down to 15-minute horizons. Robinhood's broad crypto trading infrastructure gives it an advantage for these products.

The company has repeatedly described prediction markets as the fastest-growing business line in their history. According to Mackenzie, many investors who came to the platform through these contracts quickly move on to other asset classes such as stocks, crypto, futures and options. Some are also looking into retirement planning accounts.