Wintermute Trading confirmed it is now providing continuous, two-sided liquidity across major prediction market platformsю This is the latest institutional market maker to move into the rapidly scaling event-contracts sector.
The firm processes more than $3.5 trillion in annual trading volume across over 70 exchanges. It is now providing liquidity on Kalshi and Polymarket, extending the same trading infrastructure it uses in crypto spot and derivatives markets to event contracts.
Prediction markets are emerging as a distinct asset class, pricing probabilities on events that traditional markets don't capture cleanly
— Wintermute (@wintermute_t) May 29, 2026
Wintermute is now providing liquidity on event contracts across leading venues pic.twitter.com/ekWn2SnCcJ
Growing Pattern
Prime brokers Clear Street and Marex have built clearing on-ramps for hedge fund clients. Jump Trading, Susquehanna, and Galaxy Digital are already active as market makers. Citadel Securities has publicly acknowledged "sound industrial logic" for a potential entry of its own.
Gambling group Flutter Entertainment recently disclosed it is already generating revenue in the sector — as a market maker, not a platform operator.
Monthly trading volumes in prediction markets have surged past $20 billion, but the liquidity profile has historically lagged that growth: wide spreads, limited depth, and meaningful slippage on larger orders.
"Prediction markets have the demand profile of a major asset class but the liquidity profile of an early-stage one," said Jake Ostrovskis, Wintermute's head of OTC trading.
"For these markets to become a reliable real-time source of probability estimates, they need sustained two-sided liquidity. That depth tightens spreads, supports larger trade sizes, and in turn improves the signal embedded in market prices."
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Event Risk as a Tradeable Category
Wintermute frames the segment as an expansion into what it calls "event risk" trading. Unlike traditional derivatives that track proxy instruments, including equities and rates, prediction markets let institutions hedge or take directional exposure on specific catalysts: a policy decision, an economic data release, an electoral outcome.
The firm is drawing on its existing work in blockchain settlement and stablecoin collateral to navigate an infrastructure that overlaps heavily with the digital asset markets it already operates in.
Wintermute joins a market that is attracting an increasingly familiar mix of market makers, prime brokers, and trading firms. What remains less clear is how much additional institutional flow the sector can absorb before liquidity catches up with demand.
