Galaxy Digital Launches OTC Prediction Markets for Institutions
- Galaxy Digital (GLXY) has launched over-the-counter (OTC) prediction markets trading for institutional investors.
- The service allows hedge funds and family offices to trade contracts linked to political and economic events, enhancing liquidity options.
- A $10 million trade was facilitated with crypto-focused hedge fund Arca, related to the proposed CLARITY Act on digital asset regulation.
- Initial offerings include non-sports event contracts from platforms like Kalshi and Polymarket, with plans for future expansions.
- This move reflects a trend of increasing institutional participation in prediction markets, traditionally dominated by retail traders.
The launch is significant as it provides sophisticated investors with institutional-grade infrastructure to express macro views through event-driven strategies. By acting as a principal counterparty, Galaxy can facilitate larger transactions more discreetly than traditional exchanges.
With the facilitation of a $10 million trade tied to regulatory developments, Galaxy’s new offering aims to deepen liquidity in the prediction market space.(Source)
