Wintermute Expands Institutional Trading Business Into Prediction Markets
Wintermute says it has launched institutional OTC prediction markets, providing two-sided liquidity on leading platforms and completing a $10 million U.S. crypto legislation trade with Arca.
Wintermute is expanding into prediction markets by launching an institutional over-the-counter offering and providing two-sided liquidity for prediction contracts on leading platforms. The firm said liquidity in the sector remains early-stage and needs consistent two-sided flow to tighten spreads and support larger trades, according to OTC head Jake Ostrovskis. Wintermute has already completed a $10 million trade tied to U.S. crypto legislation with hedge fund Arca, signaling institutional demand for bespoke event-based exposure. The company also said it currently processes $3.5 trillion in annual trading volume.
- Prediction markets: Markets or contracts where participants trade on the expected outcome of future events, with prices often interpreted as the market’s view of likely outcomes.
- OTC trading: Over-the-counter trading is a direct transaction between two parties rather than through a public exchange, often used for large or customized trades.
- Two-sided liquidity: Market-making activity in which a firm continuously quotes both buy and sell prices to improve tradability and reduce spreads.