Barclays: Prediction markets pose a threat to other speculative investment tools, with Generation Z enthusiastic about gaming-style investing.

Odaily Planet Daily News reports that Barclays analysts have pointed out that prediction markets are threatening other speculative investment tools and have become a formidable rival to leveraged ETPs. Data shows that since the 2024 U.S. presidential election, the monthly nominal trading volume of prediction platforms has been steadily increasing, with Kalshi and Polymarket’s April nominal trading volume exceeding $24 billion, nearly comparable to the scale of “call option oversubscription strategies” in indices and individual stocks, whereas a year ago, this figure was only $5 billion.

Analysts believe that the surge in prediction markets is not driven by an AI bubble but originates from viral spread among the younger generation, with nearly one-third of Generation Z and the next-generation Millennials investing in or considering participation in prediction markets and sports betting. However, at this stage, prediction markets still struggle to compete with retail flagship products like 0DTE, with the S&P 0DTE market’s total trading volume reaching as high as $57 trillion in March this year. (CNBC)