Cantor Fitzgerald Names Robinhood And Coinbase Leaders In Prediction Market Boom

Cantor Fitzgerald named Robinhood and Coinbase as the top public-market winners in the rapid rise of prediction markets.

“Why Cantor Fitzgerald thinks Robinhood and Coinbase are the best ways to play the prediction market boom Cantor Fitzgerald says Robinhood and Coinbase are best positioned to dominate the prediction market space by leveraging their massive retail scale and existing trading infrastructure”

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Robinhood's prediction markets hub quickly became one of its fastest-growing business lines by revenue.

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Users traded billions of contracts tied to sports, politics, and macro events.

Cantor pushed back on the idea that prediction markets are gambling.

Users trade by buying contracts they believe are underpriced and selling overpriced ones, similar to equities markets.

The regulatory environment is described as messy, with federal and state authorities split.

Prediction markets are unlikely to fade despite regulatory uncertainty.

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Bernstein projected the sector to grow from $51 billion in 2025 to $1 trillion by 2030.

Sports currently dominate volumes at a 62% share.

Analysts expect sports' share to moderate to around 31% by 2030.

Robinhood's prediction markets hub reached around $350 million ARR within 12 months.

Prediction market revenue is projected to increase from $150 million in 2025 to $586 million in 2026.

This would account for about 17% of transaction-based revenues.

Bernstein rated Robinhood and Coinbase as outperform.

Platforms with large retail audiences have a built-in advantage.