Galaxy enters institutional prediction markets with $10 million Arca trade
Galaxy Digital launched OTC prediction markets trading for institutional investors through its global markets desk, giving hedge funds and family offices access to large, bilateral contracts tied to political, economic, and geopolitical events. The service initially covers non-sports contracts on Kalshi and Polymarket, with expansion planned to more venues. Galaxy says clients can also pair these positions with hedges in equities, commodities, and other assets to build broader event-driven strategies. The launch highlights growing institutional interest in prediction markets, which have mostly been retail-driven. Galaxy facilitated a $10 million trade with Arca tied to the proposed CLARITY Act, showing how institutions may use these markets to hedge regulatory exposure. By acting as principal counterparty, Galaxy can provide larger trade sizes and more discretion than exchange-based platforms. The move also expands Galaxy’s derivatives and trading business.
