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Investors Place Kalshi’s Valuation at $12 Billion Amid Rapid Growth in Prediction Markets

Investors Place Kalshi’s Valuation at $12 Billion Amid Rapid Growth in Prediction Markets

Bitget-RWA2025/10/25 16:20
By:Bitget-RWA

- Kalshi, a U.S.-regulated prediction market platform, now valued at $12B after a $300M funding round, faces rising competition from Polymarket. - Both platforms expand into sports betting, with Kalshi partnering Robinhood and Polymarket securing DraftKings ties, while NHL licenses their services. - Kalshi achieved $50B in annualized trading volume but faces regulatory challenges, including state gaming disputes over sports betting models. - CFTC approval gives Kalshi a regulatory edge, but unresolved lega

Kalshi, a prediction market platform operating under U.S. regulations, has drawn significant attention in the competitive event trading industry, with venture capitalists reportedly considering a valuation as high as $12 billion, according to a

. This comes after the company completed a $300 million fundraising round in early October, which set its valuation at $5 billion. The heightened interest from investors points to the increasing demand for platforms that enable users to trade contracts based on real-world events, ranging from politics to sports.

Recent funding proposals, which could elevate Kalshi’s worth to $10 billion or more, are emerging alongside a broader surge in the prediction market industry. Competing platform Polymarket has also experienced a spike in activity, recently receiving a $2 billion investment from Intercontinental Exchange at a $9 billion valuation. Both firms are looking to expand into the sports betting arena, a move that could accelerate their growth. For example, Kalshi joined forces with

to introduce a football prediction market in August, while Polymarket is positioning itself as a settlement platform for should the latter enter the field. The National Hockey League has already signed multi-year licensing deals with both companies, as reported by .

Investors Place Kalshi’s Valuation at $12 Billion Amid Rapid Growth in Prediction Markets image 0

Kalshi’s swift rise is highlighted by its recent milestone of reaching $50 billion in annualized trading volume, underscoring its appeal as a regulated alternative to crypto-focused platforms. CEO Tarek Mansour has stated the company’s goal is to integrate its prediction markets into “every major crypto application and exchange” within a year. Still, the industry faces regulatory challenges. While the Commodity Futures Trading Commission (CFTC) has approved Kalshi’s operations, state-level gaming authorities have raised concerns about aspects of its business model, especially regarding sports betting, according to a

. Ongoing legal questions about market manipulation and insider trading have yet to be resolved.

The rivalry between Kalshi and Polymarket is growing more intense as both seek to lead the market. Intercontinental Exchange’s $2 billion investment in Polymarket highlights the competition, but Kalshi’s CFTC approval and early legal wins—including a 2024 court decision permitting it to offer presidential election contracts—provide it with a regulatory advantage. Investors are wagering that Kalshi’s structured strategy will help it secure a leading role in a sector expected to expand as mainstream financial institutions begin to explore event trading as a new asset category.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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