Galaxy Prediction Markets Debut with $10 Million Arca Trade

Galaxy prediction markets attract institutional capital

The digital‑asset firm Galaxy has opened an over‑the‑counter prediction market platform aimed at banks, hedge funds and other institutional players. Within days it sealed a ↑ $10 million trade with hedge fund Arca that hinges on the passage of forthcoming U.S. crypto legislation.

“This is a watershed moment for regulated crypto derivatives,” said an unnamed senior analyst.

By allowing participants to hedge policy risk, the service mirrors traditional financial derivatives while staying compliant with Reuters‑cited guidelines. The trade’s size, comparable to a mid‑cap equity transaction, underscores the appetite for structured exposure amid ongoing market volatility.

Industry observers note that the timing coincides with post‑pandemic shifts in capital allocation, as investors seek new yield sources beyond conventional bonds.

Future offerings are expected to cover a broader array of legislative triggers, potentially expanding the market’s depth and liquidity.

Words by Chloe Winters (Venture Capital & Innovation Reporter).