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Are Prediction Markets Mirroring Crypto's Boom?
The Motley Fool· 2026-02-28 04:00
Group 1 - Prediction markets are gaining popularity among both professional investors and everyday individuals, similar to the rise of cryptocurrency [1][3] - Investors are using official "event contracts" to make predictions on various economic indicators, which has attracted the attention of major financial institutions like Goldman Sachs and the Federal Reserve [2][12] - The emergence of prediction markets is being compared to the initial acceptance of cryptocurrency as a new asset class, with investors beginning to allocate portions of their portfolios to these markets [3][12] Group 2 - There is a concern that prediction markets may simply be a new form of speculative gambling, particularly in the context of sports betting [4][6] - The current downturn in the cryptocurrency market has made prediction markets appealing to crypto investors, offering opportunities to profit from price declines [7] - Investment firms are developing new prediction market exchange-traded funds (ETFs) to provide everyday investors with exposure to this emerging market [9][10] Group 3 - Companies like Robinhood Markets are positioned to benefit from the prediction market boom, as they have already integrated these markets into their platforms [11][12] - The regulatory landscape for prediction markets is still uncertain, which could significantly impact which companies succeed in this space [12][13]