🔥 NEW: Robinhood Makes Prediction Market Push With Purchase of Former FTX Platform LedgerX@willcanny99 reportshttps://t.co/w94s8T0r9y ...

Core Insights - Robinhood (HOOD) has agreed to acquire 90% of MIAX Derivatives Exchange, aiming to enhance its presence in the prediction markets sector, which is rapidly growing [1][2] - Following the announcement, HOOD shares increased by 8.3% [1] - MIAX operates the CFTC-regulated derivatives exchange LedgerX, which it purchased from FTX for $50 million in 2023 [1] Company Developments - MIAX CEO Thomas Gallagher stated that the transaction will expedite MIAX's access to the growing prediction markets [2] - Robinhood currently accounts for over 50% of Kalshi's trading volume, generating more than $300 million in annual recurring revenue from prediction markets, with nine billion contracts traded by over one million users [4] - Analysts suggest that by adding its own liquidity, Robinhood can diversify its product offerings, increase trading volumes, and enhance its take-rate while continuing to distribute Kalshi contracts [4] Industry Trends - Bernstein highlighted that Robinhood's entry into prediction markets through a joint venture with Susquehanna underscores the importance of this business to Robinhood's growth narrative [3] - The prediction markets landscape is evolving into a two-tier structure, with platforms like Kalshi and Polymarket needing access to larger retail audiences through brokers and crypto exchanges [6] - Robinhood's 14 million active traders provide a significant demographic advantage, allowing the company to capture a larger share of the sector's revenue pool [6] Market Reactions - Bernstein has reaffirmed its outperform rating on Robinhood shares with a price target of $160 [7] - The report also anticipates that Coinbase (COIN) will introduce its prediction-markets product at an upcoming event, although its strategy remains uncertain [5]