U.S. investment bank Bernstein released a report, evaluating that prediction markets are evolving from speculative platforms for individual investors to financial products for institutional investors. The report states, "Institutional investors are attracted to prediction markets. The ability to hedge specific event risks such as tariffs, elections, and geopolitical changes through contracts that are simply determined by a yes/no outcome makes prediction markets attractive." It added, "The first customized institutional block trade (Block Trade, which generally refers to large-scale transactions privately negotiated between institutional investors) recently executed on Kalshi will serve as an important milestone. The introduction of block trades and customized contracts could expand the participation of institutional investors seeking targeted investments in specific event risks."
