Why is Citadel Securities watching this space?
Citadel sees potential in prediction markets as a hedging tool. For example, investors could use event contracts tied to elections or macro events to manage risks in their portfolios.

What’s holding institutions back right now?
The main issue is liquidity. Compared to traditional markets, prediction markets are still relatively small. Firms like Citadel are waiting for the market to mature before committing resources.

Could prediction markets become mainstream?
Possibly. If regulation becomes clearer and liquidity improves, prediction markets could evolve into a legitimate financial tool rather than just speculative platforms. Institutions entering the space would likely accelerate that shift.