Galaxy Digital launched institutional OTC prediction markets trading through its Global Markets desk, executing a $10M opening trade with crypto hedge fund Arca on Kalshi contracts tied to CLARITY Act passage.
Posted June 3, 2026 at 6:33 am EST.
Galaxy Digital Inc. announced Tuesday the launch of institutional OTC prediction markets trading through its Global Markets trading desk, giving hedge funds, family offices, and other institutional clients access to prediction market liquidity at sizes and with a level of discretion not available through retail interfaces.
The opening trade was structured. Arca, a crypto-native hedge fund, executed a $10 million position with Galaxy as principal counterparty on outcomes tied to the passage of the CLARITY Act, the digital asset market structure legislation currently making its way through Congress.
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The trade settled on Kalshi-listed contracts referencing the bill’s passage probability.
Jeff Dorman, Arca’s Chief Investment Officer, said, “Arca is currently investing in themes closely related to the negotiations in Washington over CLARITY. 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.”
The launch matters because it institutionalizes a market that has, until now, lacked the architecture for serious capital. Galaxy’s offering covers non-sports event contracts on Kalshi and Polymarket spanning economic, political, geopolitical, and other event-driven markets, with plans to expand to additional platforms. As principal counterparty, Galaxy can warehouse risk, hedge across equities and commodities, and execute on a bilateral OTC basis at sizes that would distort retail order books. For sophisticated investors expressing macro views through prediction markets, the missing piece has been liquidity and execution scale. Galaxy is filling that gap directly.
“Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match,” said Jason Urban, Galaxy’s Global Co-Head of Digital Assets. “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.” Galaxy expects institutional capital flowing through facilitators like itself to make prediction-market prices more reflective of professional analysis, and more useful as signals for investors, policymakers, and corporates watching the same outcomes.
The launch lands during a particularly active stretch for prediction markets. The CFTC last week approved Kalshi to list the first US bitcoin perpetual contract and gave Coinbase a no-action letter to route customers to global perps. President Trump publicly defended the CFTC’s exclusive authority over prediction markets on Truth Social a week earlier. House Oversight opened an insider trading probe into both platforms. Galaxy’s move adds a major US-listed crypto investment firm to the institutional rails being built around the category, marking the moment when prediction markets cleared the bar from retail novelty to a structurally accepted institutional venue.
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