Galaxy Digital Launches Institutional Prediction Market Desk With $10 Million Kalshi Trade

Galaxy Digital has launched a new over the counter (OTC) prediction market trading desk aimed at hedge funds, family offices and other institutional investors looking for larger and more flexible exposure to event-driven markets.

The company announced the launch with a $10 million trade executed alongside crypto hedge fund Arca. The position was tied to the potential passage of the Clarity Act through the Kalshi prediction market platform. Galaxy acted as the principal counterparty, allowing Arca to build a large position outside the limitations of traditional retail trading interfaces.

Institutions Seek Larger Prediction Market Exposure

Jason Urban, Global Co-Head of Digital Assets at Galaxy, said event-driven markets are becoming an important tool for investors seeking to express macroeconomic and political views. Arca Chief Investment Officer Jeff Dorman noted that prediction markets offered an effective hedge for the firm’s Washington-focused investments, but retail liquidity was not sufficient for institutional-scale trading.

Prediction Markets Attract More Professional Investors

Galaxy’s new desk supports non-sports event contracts across platforms such as Kalshi and Polymarket, covering political, economic and geopolitical outcomes. The firm also allows clients to combine prediction market positions with equity and commodity hedges to create broader risk-management strategies.

The launch reflects increasing institutional interest in prediction markets, following similar moves by Wintermute, BitGo, Susquehanna Crypto and Jump Trading as demand for event-based investing continues to grow.