Bloomberg Law
April 20, 2023, 5:07 PM

Hedge Funds Are Wooed by Startup to Bet Millions on Real Events

Lydia Beyoud
Lydia Beyoud
Bloomberg News

With its bid to let Americans wager on elections put on ice by federal watchdogs, Kalshi Inc. is now shopping a plan to let hedge funds easily wager millions of dollars on more real-life events.

The upstart New York-based derivatives exchange has been quietly laying the groundwork with trading firms and desks for months. The pitch: hedge risk and bet directly on market-moving news like monetary policy, weather shifts and geopolitical outcomes without needing a cocktail of complex, and often costly financial instruments.

Kalshi has thus far marketed itself mostly to the masses, despite the Citadel Securities quant trader pedigrees ...

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