DRW, Wintermute Join Rush Into Prediction Markets as Institutional Capital Pours In
Summary
- DRW has started building a dedicated trading desk for prediction markets, expanding into platforms such as Polymarket and Kalshi.
- Wintermute and IMC are also hiring for related roles, highlighting growing institutional capital flows into prediction markets.
- Polymarket recorded annual trading volume of as much as $40 billion, while sports prediction markets generated more than $700 million in trading, driving the spread of arbitrage and quant trading strategies.
Forecast Trend Report by Period
Large quant trading firms are moving into prediction markets such as Polymarket and Kalshi.
CoinDesk reported on June 6 that DRW has started building a dedicated trading desk for prediction markets. Crypto market maker Wintermute and IMC are also hiring for related roles.
Institutions are being drawn by surging trading volumes. Polymarket recorded as much as $40 billion in trading volume last year across political, economic and sports markets. More recently, prediction markets tied to UEFA Champions League, NBA and NHL champions alone generated more than $700 million in volume.
The firms are reportedly targeting arbitrage opportunities created by price gaps across platforms rather than trying to predict the outcomes of games or elections themselves. As the market expands, quant trading strategies long used in traditional finance are also spreading into prediction markets.
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