Rising volume on Polymarket and Kalshi is attracting quantitative and institutional trading firms to prediction markets, with CoinDesk reporting that DRW, Wintermute and IMC are hiring dedicated teams focused on the sector. Rather than mainly forecasting event outcomes, the firms are targeting market inefficiencies through cross-platform arbitrage, market microstructure arbitrage and news-driven strategies. Industry participants say competition is increasing around latency, liquidity and cross-platform execution as the market expands and Hyperliquid plans prediction-market products.