Webull and Kalshi: The Odd Couple of Prediction Contracts! 🎉

So, it turns out that the Webull brokerage platform has decided to play nice with the Kalshi prediction market. Yes, you heard that right! They’re offering Kalshi’s event contracts directly on their trading platform. Because who doesn’t want to gamble on the future of the universe from the comfort of their couch? 🛋️

According to a thrilling announcement made on February 12 (mark your calendars, folks!), Webull customers can expect this delightful rollout over the next few weeks. Just in time for you to lose your money in style!

Initially, users will have access to a limited selection of cash-settled event contracts. But don’t worry, they plan to expand and diversify the number of prediction markets available. Because nothing says “trustworthy investment” like a buffet of options! 🍽️

Webull is the second broker to join this wild prediction market party, despite some grumpy financial regulators in the U.S. who seem to think that sports-related event contracts are a bad idea. But hey, what do they know? 🤷‍♂️

CFTC Probes Super Bowl Event Contracts

In a plot twist worthy of a soap opera, the Commodity Futures Trading Commission (CFTC) — the financial agency that loves to rain on parades — is considering probing Crypto.com’s planned Super Bowl contracts. Because nothing says “fun” like a government investigation! 🎭

On February 4, the CFTC officially opened a probe into the sports-related event contracts offered by Crypto.com and Kalshi. They want to make sure these contracts comply with existing derivatives laws. Because who doesn’t love a good compliance check? 📋

Just a day before this thrilling announcement, Kalshi had announced a partnership with Robinhood to offer prediction contracts. But wait, there’s more! Robinhood decided to offer Super Bowl event contracts to its customers ahead of the big game. Talk about a last-minute decision! 🏈

However, in a classic case of “oops, we did it again,” Robinhood suspended its Super Bowl contracts on February 4 — just one day after launching them — due to a CFTC request to pause the activity. A spokesperson for Robinhood expressed disappointment, saying, “We had been in regular communication with the CFTC about our intent and plans to offer this product.” Well, that’s just awkward! 😬

Now, while sports betting and sports-related event contracts may seem like two peas in a pod, there’s a key distinction. Traditional sports betting relies on a bookkeeper to set the odds, which is like letting the fox guard the henhouse. 🦊

On the flip side, prediction markets resolve in a bottom-up, organic way, using collective market intelligence to reach a consensus about a particular event. So, if you’re looking for a way to lose money that feels a bit more sophisticated, this might just be your ticket! 🎟️

2025-02-13 00:15

CFTC Probes Super Bowl Event Contracts

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