Prediction markets are no longer a niche curiosity for crypto enthusiasts. Kalshi, a platform that operates as a federally regulated real-world performance futures exchange, just closed a funding round of more than $1 billion. The company’s valuation jumped to approximately USD 22 billion, just a few months after the Series E round, which valued it at USD 11 billion. The doubling of value in such a short time speaks for itself.
Coatue leads, the rest of the market looks on with envy
The round is led by Coatue Management – a fund well known for its successful bets on technology companies. According to reports from the Wall Street Journal and Bloomberg, the final financing is expected to amount to approximately USD 1 billion, although this amount has already been exceeded. The company’s revenue reached approximately USD 1.5 billion – a number that is impressive and explains the appetite of investors.
Kalshi vs. Polymarket – two visions of the same market
Companies such as Susquehanna International Group and Jump Trading are already active on Kalshi, and Tradeweb Markets has established a partnership in the distribution of data from predictive markets.
Growth attracts not only capital but also regulators
The rapid development of the sector has not escaped the attention of regulators and lawyers. Arizona has filed criminal charges against entities affiliated with Kalshi, alleging that the platform is conducting illegal gambling activities without a license.
Kalshi denies these accusations, calling them “seriously flawed” and pointing out that her contracts are subject to federal CFTC regulations. An additional blow was the ruling of March 19 – the Ninth Circuit Court of Appeals refused to grant the company an emergency stay of proceedings in the case related to Nevada, which opens the way to further actions at the state level.
Similar regulatory pressure also affects Polymarket – both platforms are being increasingly closely monitored for potential insider trading and market manipulation.
Investors vote with their wallets
Despite legal turbulence, capital flows in a wide stream. The prediction markets sector has grown to a scale that can no longer be ignored – either as a financial or regulatory phenomenon. Kalshi proves that a regulated model can attract institutions as effectively as crypto-native competition.
