Webull Online Brokerage Introduces Cryptocurrency Trading Through Kalshi Partnership
Online brokerage firm Webull has introduced cryptocurrency contract trading to U.S. retail investors through a partnership with Kalshi, a market contract trading platform. The collaboration enables users of the Webull exchange to place hourly predictions on the future direction of Bitcoin and Ethereum in a simple over/under type of contract.
This product expands Webull's growing partnership with Kalshi, a Commodity Futures Trading Commission (CFTC) regulated exchange, to provide exposure to alternative financial assets to individual investors. The prediction contracts are simple and inexpensive, providing new and seasoned investors with a means of betting on the short-term direction of the market while capping potential losses, according to the company.
It combines this new product with traditional investment products such as stocks, ETFs, and options so users can access a variety of financial products in one place after signing up with a Kalshi promo code.
Webull's new cryptocurrency prediction markets segment in the U.S. is headed by Group President and CEO Anthony Denier, who reflects the company's broader commitment to innovation and accessibility in finance. Denier stated that prediction markets offer clear and easy-to-use trading opportunities with minimal entry points, enabling customers to implement market data accurately.
Despite the platform's regulation-oriented nature and its affiliation with a CFTC-regulated exchange, Kalshi's business model has been challenged in certain jurisdictions. In March, the Nevada Gaming Control Board sent Kalshi a cease-and-desist letter stating that the company was operating event-based contracts as an unlicensed sports betting pool.
Kalshi struck back by suing the Nevada regulator in court to contest the state's interpretation of its event contracts and license terms. A federal judge has recently permitted the suit to proceed, temporarily enjoining Nevada from implementing the cease-and-desist order.
Prediction market battles far from over
However, the court also permitted the Nevada Resort Association, the state's biggest gaming industry trade organization, to intervene in the case in support of the regulators' crackdown. The court case isn't yet final, and Kalshi's site remains open to Nevada residents, including those under the state's legal gaming age of 21.
As Kalshi fights this battle, in addition to legal battles in other states, the prediction market industry is also undergoing rapid change. Especially notable was the announcement by Elon Musk's social media site X (previously Twitter) of Polymarket as its official prediction marketplace partner. The announcement was preceded by Kalshi also stating that it had its own agreement with X, a statement the company later retracted.
Similar (but different) companies
Polymarket described its alliance with X as a "pivotal development" in public forecasting and digital information. However, Polymarket and Kalshi's different operational models also reflect a broader lack of alignment in regulation and technology direction within the prediction marketplace.
Kalshi is regulated by the CFTC and limited in activities to event contracts permitted in a specified legal system. Polymarket, on the other hand, is blockchain-based and has already faced enforcement by the U.S. Securities and Exchange Commission (SEC) for its unregistered offerings
