Kalshi Prediction Market to Introduce Cryptocurrency Betting (Payouts in USD)

Kalshi Prediction Market to Introduce Cryptocurrency Betting (Payouts in USD)

Cryptocurrency
March 18, 2024 by Diana Ambolis
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The CFTC-Regulated Platform to Enable Traders to Wager on Ethereum’s Yearly High and Other Price Scenarios Amid Resurging Interest in Cryptocurrency and Prediction Markets. Kalshi, the sole regulated prediction market platform in the United States, is seizing the opportunity to tap into the resurgence of interest in cryptocurrencies following a two-year downturn. The New York-based
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The CFTC-Regulated Platform to Enable Traders to Wager on Ethereum’s Yearly High and Other Price Scenarios Amid Resurging Interest in Cryptocurrency and Prediction Markets.

Kalshi, the sole regulated prediction market platform in the United States, is seizing the opportunity to tap into the resurgence of interest in cryptocurrencies following a two-year downturn. The New York-based company plans to introduce cryptocurrency betting options for its clients, starting from Monday, as confirmed by a company representative to the sources. These options will encompass five different cryptocurrency price predictions, such as the timing of Bitcoin (BTC) reaching $100,000 and the highest price projection for Ethereum’s ether (ETH) in 2024. Furthermore, additional markets are scheduled to be launched on Tuesday.

It’s important to note that although these bets pertain to cryptocurrencies, they will be denominated in U.S. dollars, aligning with Kalshi’s approach for all its markets. Previously, traders on the platform have engaged in betting on various topics, including the number of Federal Reserve rate cuts in a year, the expected snowfall in New York for March, and predictions regarding the winners of the Oscars for best screenplay.

Kalshi’s venture into the realm of cryptocurrency coincides with what appears to be the dawn of a bull market for digital assets. Factors such as the introduction of bitcoin exchange-traded funds have propelled prices upward, as evidenced by the nearly 50% surge in the Sources 20 Index of major digital assets this year.

Also, read- Top 10 Amazing Ways Cryptocurrency Is Transforming The Financial Services Department

This move also comes at a time of renewed interest in prediction markets, which were historically confined to niche circles. Bitwise Investments researchers have forecasted a substantial increase in stakes within prediction markets, estimating over $100 million in total wagers by 2024, as they emerge as a prominent application within the crypto space. Notably, former U.S. President Donald Trump has shown interest in crypto-based prediction markets, frequently sharing screenshots of favorable odds on platforms like Polymarket.

Advocates of prediction markets argue that they serve a broader purpose beyond mere gambling. By incentivizing participants to back their beliefs with monetary stakes, prediction markets provide valuable insights into public sentiment, potentially offering a more accurate gauge than traditional polls or pundits’ opinions.

Kalshi’s decision to introduce crypto betting follows in the footsteps of its competitor, Polymarket, which currently hosts numerous markets related to cryptocurrency outcomes. However, Kalshi, being licensed by the Commodity Futures Trading Commission (CFTC), enjoys a unique advantage as it can cater to U.S. traders seeking to speculate on crypto price movements without directly engaging in crypto transactions.

Nevertheless, Kalshi’s regulatory standing with the CFTC has also brought challenges. The company is currently embroiled in a legal battle with the CFTC over its ability to list markets concerning the control of each house of the U.S. Congress. In contrast, platforms like PredictIt operate under special exemptions from the CFTC, albeit with certain restrictions. CFTC Chairman Rostin Benham recently announced plans to propose new regulations for prediction markets in the coming months.