Coinbase, Robinhood Top Ideas for Prediction Markets Expansion, Says Cantor
Posted on: April 14, 2026, 11:30h.
Last updated on: April 14, 2026, 11:30h.
- Research firm says the two brokerage houses are the best publicly traded ideas for investors looking for prediction markets access
- Prediction markets are Robinhood’s fastest-growing business to date
- Event contracts are similar to crypto, equities trading where these companies are among the dominant names
Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD) are positioned as two of the primary winners of the prediction markets boom among companies that are publicly traded, according to Cantor Fitzgerald.
In a new report, Cantor Fitzgerald analyst Ramsey El-Assal highlights the explosive growth of yes/no exchanges, noting event contract volume continues surging at a rapid pace. Robinhood already cites prediction markets as its fastest-growing business in company history. Both brokerage firms have established, expansive customer bases, and some of those clients are already displaying prediction market enthusiasm.
Perhaps to the delight of Coinbase and Robinhood investors, El-Assal sees pathways for prediction markets broadening their appeal to the professional investment community, which would provide added credibility while dispelling the notion that event contracts are simply another form of sports betting.
Prediction markets will emerge as a versatile tool for institutional investors,” observes the analyst.
Sports trading generates buzz and volume for prediction markets, but there’s increasing belief that these platforms will appeal to institutional investors looking for hedges, risk management tools and avenues for trading around discreet events, such as economic data releases.
Coinbase, Robinhood Have Prediction Market Advantages
Coinbase recently declared its prediction market entry by way of a partnership with Kalshi and Robinhood has long worked with Kalshi, though there are signs that company is moving toward a go-it-alone prediction market approach.
Still, the two brokerage firms have advantages in terms of potential appeal to market participants seeking prediction markets exposure. While valuations on Kalshi and Polymarket are soaring, those companies remain private and with so many unicorns across a variety of industries remaining closely held for longer periods of time in an effort to boost their valuations, it may be awhile before public investors can access the biggest prediction market operators. Coinbase and Robinhood fill that void.
The two financial services firms have other advantages. As Cantor’s El-Assal points out, Coinbase and Robinhood are already known entities to retail investors and they have infrastructure and technology to rapidly scale in the event contracts arena.
Additionally, it’s not a stretch to say that many of Coinbase’s and Robinhood’s retail clients are already sports bettors or, at a minimum, interested in that activity and/or prediction markets.
Prediction Markets Aren’t Gambling, Says Analyst
While sports event contracts are primary volume drivers for Kalshi and that much was seen over the course of the Masters last weekend, El-Assal points out that it’s a misnomer that yes/no exchanges are simply betting masquerading as trading.
“A common misunderstanding about prediction markets is that they are gambling platforms in disguise,” observes the analyst.
Industry supporters note that there’s a clear distinction between prediction markets and sports betting. In the former, bettors or traders are going up against each other, but in sports betting, they’re battling the house. That’s an appealing model for operators such as Coinbase and Robinhood because they make money on fees regardless of outcomes, meaning they’re not vulnerable to runs of customer-friendly results – something that’s previously stung traditional sportsbooks.
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