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.

Crypto

Talos integrates institutional trading tools with Kalshi prediction market

Talos has integrated with Kalshi to let some institutional clients trade prediction market event contracts and crypto perpetual futures through their existing digital asset trading infrastructure. The move eliminates the need to build separate connections, reducing operational burdens for professional trading firms such as hedge funds and market makers. Talos also offers algorithmic orders and multi-leg execution, enabling spread trades and block trades via an RFQ platform.