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Virtu, Clear Street Expand Into Prediction Markets Trading

Virtu Financial and Clear Street are offering clients access to prediction market trading through Kalshi Inc. This marks the latest push by Wall Street firms to tap into the growing event-betting sector.

The market-making and brokerage firms are joining a nascent group of institutional players exploring prediction markets, which allow traders to wager on outcomes of future events through contract structures.

Kalshi's expansion into the institutional space comes as the prediction markets industry seeks broader adoption among sophisticated investors and hedge funds. The platform has faced regulatory scrutiny, including questions from Massachusetts courts about whether its contracts constitute gambling under state law.

The company characterizes its offerings as financial arrangements using swap-style contracts rather than traditional wagering, a distinction that remains contested in some jurisdictions.