Robinhood has taken a major leap beyond traditional stock trading by launching a betting markets hub, sparking an 8% surge in its stock price (HOOD) on Nasdaq, according to a March 17 announcement. The move positions the platform deeper into alternative asset classes, including cryptocurrencies and event contracts.

The new feature allows users to trade contracts on various events, from predicting the Federal Reserve’s interest rate decisions to wagering on the NCAA men’s and women’s basketball tournaments. This expansion is powered by Kalshi, the first CFTC-regulated prediction platform in the U.S., which already offers contracts on elections, movie ratings, and more.

Prediction markets have gained credibility as reliable indicators of public sentiment, often outperforming traditional polling methods. Platforms like Kalshi and Polymarket notably called Donald Trump’s election win in November, even as mainstream polls showed an uncertain race. Since September 2024, the sector has exploded, with prediction market trading volumes reaching nearly $4 billion by November.

Robinhood first tested political event contracts in October, letting select users place bets on the presidential showdown between Trump and Kamala Harris. However, the platform faced regulatory pushback, suspending Super Bowl betting in February after a request from the CFTC.

Beyond prediction markets, Robinhood continues to broaden its crypto offerings. In March, it listed new memecoins like Pengu (PENGU), Pnut (PNUT), and Popcat, reinforcing its role in digital assets. Earlier this year, it also introduced futures contracts tied to Bitcoin. The company’s latest earnings report highlights a staggering 700% year-over-year increase in crypto revenue in Q4 2024, fueled by Trump’s election victory and surging market prices.