[Digital Today reporter Hyunwoo Choo] Major cryptocurrency companies such as Coinbase and Robinhood are paying attention to prediction markets as a new growth driver. Blockchain media outlet CoinDesk reported this on April 21 local time.

Investors are focusing more on future demand and new product roadmaps than on first-quarter 2026 results expected to be hurt by sluggish crypto trading. In fact, Coinbase and Robinhood have generally weak outlooks for first-quarter results. During the first quarter, bitcoin and ether prices fell about 23 percent and 29 percent, respectively, and trading volumes across exchanges also declined. Coinbase trading volume fell to about $54 billion in March from about $66 billion in January, based on external tallies.

Cantor Fitzgerald analyst Ramsey El-Assal (램지 엘아살) saw these companies' quarterly results increasingly being taken as backward-looking indicators, with market attention shifting to future demand flows and product expansion. Prediction markets were cited as a leading example of that change.

Recent gains in both companies' share prices despite weak results underscore that. Coinbase shares are up about 18 percent so far this quarter, and Robinhood rose about 40 percent in April from its late-March low. Improving risk appetite and easing geopolitical tensions were cited as factors.

Interest continues in Coinbase's prediction market product launched this year. Robinhood is pursuing tokenisation and broader access to private markets alongside prediction markets. Cantor Fitzgerald also maintained an overweight view on Robinhood and raised its target price to $110.

Regulatory uncertainty remains. The New York State Attorney General's Office filed a lawsuit on April 21 against Coinbase and Gemini, saying their prediction market products amount to gambling products and violate state rules. Legal disputes at the state and federal levels are also continuing over whether sports-related prediction contracts should be seen as gambling or as a federally regulated business.