Barclays: Prediction Markets Are Threatening Other Speculative Investment Tools, Gen Z Enjoys Gambling-Style Investing

Odaily Planet Daily News Barclays analysts point out that prediction markets are threatening other speculative investment tools and have already become a formidable rival to leveraged ETPs. Data shows that since the 2024 US presidential election, the monthly nominal trading volume on prediction platforms has continued to grow. Among them, the nominal trading volume of Kalshi and Polymarket in April has exceeded $24 billion, almost on par with the scale of "overbought call option strategies" for indices and individual stocks, while this figure was only $5 billion a year ago.

Analysts believe that the prediction market craze is not driven by the AI bubble but originates from the viral spread among the younger generation. Nearly one-third of Gen Z and the next generation of Millennials are currently engaging in or considering participating in prediction markets and sports betting. However, at this stage, prediction markets still struggle to compete with the retail flagship product 0DTE. The total trading volume of the S&P 0DTE market in March this year reached a staggering $57 trillion. (CNBC)