Cantor Fitzgerald is set to become one of the first investment firms to offer institutional trading on prediction markets, announcing Wednesday that it will provide its clients access to Kalshi’s event contracts. The move signals a shift as hedge funds and other large investors begin to embrace an asset class that has so far been driven mainly by retail traders.
Under the arrangement, Cantor will serve as a broker, organizing block trades on Kalshi’s platform for its clients. Block trades are large, privately negotiated transactions typically executed outside public markets to avoid price volatility — a common feature of trading among major Wall Street firms. Susquehanna International Group will provide pricing and liquidity as a market maker in these trades with Cantor’s clients.
“Prediction markets are growing rapidly, but institutional participation has not kept pace because investors have lacked the ability to transact at scale on a regulated exchange. The liquidity is here,” said Pascal Bandelier, co-CEO and global head of equities at Cantor, in a press release.
Joe Grubb, head of business development at Susquehanna, sees institutional risk transfer as the next step for prediction markets’ material growth. The arrangement was first reported by the Wall Street Journal.
Kalshi’s push to attract Wall Street
Wednesday’s announcement is the latest in a series of moves by Kalshi to appeal to professional investors. The company has increasingly focused on institutional clients even as retail traders have driven its rise, primarily through sports-related event contracts.
Cantor first approached Kalshi a few months ago, according to Kalshi spokesperson Elisabeth Diana. The global investment bank can also request that Kalshi design new markets for its clients to trade on. “We will submit it to the CFTC and we have to make sure there is enough liquidity,” Diana said. She added that clients would be interested in Kalshi’s climate, weather, and economic indicator markets.
Kalshi completed the first block trade on an event contract exchange in April, and has announced a series of partnerships and internal initiatives this year aimed at giving institutional clients confidence in participating in a novel asset class.
The move comes as prediction markets continue to expand their offerings beyond traditional financial instruments, offering contracts on everything from election outcomes to weather events. With Cantor and Susquehanna now involved, the market may be poised for a significant influx of institutional capital.
Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/19/hedge-funds-are-about-to-jump-in-big-to-prediction-markets.html
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