No bull, Webull has a new partner.
St. Petersburg-based Webull Financial announced Wednesday the company has partnered with New York-based Kalshi to introduce event-contracts trading, joining other online brokerages entering the ever-expanding prediction market, according to a report by Bloomberg News.
It is expected that these will be available to all Webull customers by the end of February, however the digital investment platform will not be offering any sports markets.
What are event-contracts?
Event futures contracts allow people to speculate on the outcome of a specific event. For example, the result of a political election (as we saw in last November's Presidential Election where prediction markets really exploded onto the American landscape), the winner of a sports championship, or the closing point value of say the S&P 500.
Most contracts are designed on "yes" or "no" results.
Webull’s platform (commission-free) will be able to trade event contracts linked to financial products tracking economic events on Kalshi, whose prediction markets are regulated by the U.S. Commodity Futures Trading Commission.
Both companies will also offer and provide educational content on the new offerings that will allow investors to make informed investment decisions.
“We have continually focused on equipping our customers with the best products and streamlined trading tools while evolving alongside their needs. Offering prediction markets is a key step in fulfilling that commitment and expanding opportunities for our investors to access all areas of the capital markets, said Webull Group president and U.S. CEO Anthony Dernier in a news release.
Joining other brokerages
Crypto.com and most recently Robinhood Markets have already entered the event contract space, allowing investors to wager on numerous offerings.
Robinhood had announced last week it was going to offer sports-related offerings prior to the Super Bowl, but after some regulatory backlash, immediately thereafter pulled back from that.
