Robinhood has announced the launch of a betting markets hub, partnering with Kalshi to create an event contract platform. Following this announcement, Robinhood's shares (HOOD) rose approximately 8% on the Nasdaq. This new functionality allows users to trade contracts related to upcoming events, including the projected fed funds rate in May and the NCAA College Basketball Tournaments. Kalshi, the United States' first CFTC-regulated prediction market platform, will handle the operation of this event contract service. The prediction market sector has seen growing interest in the U.S., especially since September 2024, when Kalshi successfully challenged a CFTC ruling that previously restricted political event contracts. With this move, Robinhood is expanding beyond traditional stock trading into emerging asset classes such as cryptocurrencies and derivatives. The company's recent initiatives indicate significant growth in areas like crypto trading, with a reported 700% year-over-year increase in its fourth-quarter earnings for 2024, largely driven by rising interest in crypto assets.

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