Cantor Fitzgerald plans to open the Kalshi prediction market to its institutional clients

According to The Wall Street Journal, Cantor Fitzgerald plans to open the Kalshi prediction market to its approximately 3,000 institutional clients, including family offices and hedge funds, allowing them to trade event contracts related to weather, commodities, and corporate performance. Susquehanna International Group will provide quotes and liquidity for the related trades.

Cantor will act as a broker, buying and selling large event contracts for clients and may distribute related positions to other investors through private negotiations. Cantor Co-CEO Pascal Bandelier stated that hedge funds have expressed interest in trading event contracts linked to iPhone sales, rather than indirectly betting on volume changes through Apple's stock price; family offices are focused on using contracts related to weather, crop yields, and oil prices for risk hedging.

Joe Grubb, Head of Business Development at Susquehanna Predictions, mentioned that AI supply chain risks and computing power prices could also become application scenarios for the prediction market. Institutional clients can also propose new market themes based on their needs, and the relevant companies have discussed the types of contracts they hope to launch with investors.

Kalshi has been intensifying its efforts to expand institutional clients in recent months, having completed its first large transaction this year and reached a partnership with Interactive Brokers. Max Crowley, Vice President of Business Development at Kalshi, stated that there is already a demand from institutions for hedging specific event risks.