Wall Street Firms Expand Prediction Market Trading Desks Amid Surging Volumes
Financial institutions are aggressively building specialized teams to capitalize on arbitrage opportunities in prediction markets. DRW leads the charge with a $200,000 base salary offer for traders handling real-time positions on Polymarket and Kalshi, signaling institutionalization of what began as retail-dominated platforms.
Trading volumes tell the story: from sub-$100 million monthly in early 2024 to over $8 billion by December 2025. The action has shifted from political contracts to sports-heavy offerings, with firms like Susquehanna recruiting talent to exploit pricing inefficiencies and anomalous market behaviors.
Crypto hedge fund Tyr Capital takes a different approach, hunting for seasoned prediction market strategists rather than training newcomers. 'We're extremely bullish on prediction markets' prospects, particularly for monetary policy and economic data trading,' says CIO Ed Hindi, highlighting the sector's maturation beyond speculative plays.