Galaxy to offer institutional clients sophisticated, multi-asset hedging strategies around event-driven markets; executes $10 million trade with crypto-native hedge fund Arca on Kalshi at launch
Galaxy Digital Inc. announced the launch of institutional OTC prediction markets trading through its Global Markets trading desk. With this offering, Galaxy can now enable hedge funds, family offices, and other institutional clients to access prediction market liquidity at sizes and with a level of discretion not available through retail interfaces.
The offering covers instruments referencing non-sports event contracts traded on Kalshi and Polymarket — spanning economic, political, geopolitical, and other event-driven markets — with plans to expand to additional platforms. Galaxy can also pair prediction market positions with hedges in equities, commodities, and other assets, giving clients the ability to build complete risk strategies around a single event rather than managing exposure in silos.
Galaxy has already put the offering to work, executing a $10 million trade with Arca, a crypto-native hedge fund, on the outcomes associated with the passage of the CLARITY ACT. Galaxy’s OTC desk facilitated Arca’s trade, enabling them to take a precise position tied directly to the outcome, accessing institutional-scale liquidity and executing the trade efficiently on a bilateral basis.
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“Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match,” said Jason Urban, Global Co-Head of Digital Assets at Galaxy. “We’re giving clients a principal counterparty that can warehouse risk, build hedged strategies across asset classes, and execute at sizes and scale that actually matter to their overall portfolios.”
“Arca is currently investing in themes closely related to the negotiations in Washington over CLARITY,” said Jeff Dorman, Chief Investment Officer at Arca. “Hedging via prediction markets on CLARITY is one of the most appropriate vehicles currently, but prediction markets are currently not a sophisticated institutional market with enough liquidity for a fund of our size. By utilizing the OTC market with Galaxy, we were able to execute a trade that best suits our fund strategy.”
Galaxy’s participation as a principal counterparty has a broader effect on these markets. As institutional capital flows into prediction markets through facilitators like Galaxy, Galaxy believes the prices on these platforms should become more reflective of professional analysis — and more useful as signals for investors, policymakers, and corporates watching the same outcomes.
Galaxy conducts this activity solely with institutional counterparties and evaluates offerings on a jurisdiction-by-jurisdiction basis in light of applicable legal and regulatory considerations.
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