How hedge funds are tapping prediction markets and their data for an edge

Polymarket CEO Shayne Coplan said the company has been cleared for a US launch.

Eugene Gologursky/Getty Images for The New York Times

• Prediction markets like Kalshi and Polymarket have surged in popularity.
• While some trading firms are actively using the platforms, hedge funds are mostly interested in their data.
• Dysrupt Labs in Australia, for example, uses prediction markets to monitor "drift" in the consensus.

Despite the occasional headline about big payouts from prediction market gamblers...