Crypto
Institutions flock to Polymarket and Kalshi as retail profits drop in prediction markets
Easy profit opportunities that retail traders once enjoyed on prediction markets Polymarket and Kalshi are rapidly shrinking as institutions, market makers, quant managers, funded trading firms and AI agents enter the space. The immediate battleground is the U.S. Federal Reserve’s policy rate decision, where most outcomes are priced in, leaving a narrow range to trade. Experiments also show AI models have not yet delivered stable returns.
