Online trading platform Robinhood is expected to benefit more than cryptocurrency exchange Coinbase from the growth of prediction markets, according to a survey by Japanese investment bank Mizuho.
The bank said its research showed that Robinhood users planned to fund prediction market activity primarily with fresh capital, which the bank said could limit the extent to which the product draws revenue away from other trading activity.
Coinbase users, by contrast, were more likely to sell cryptocurrency to finance prediction market trades. Coinbase announced the launch of its prediction market earlier this week.
Equity Research Analysts at Mizuho, Dan Dolev and Alexander Jenkins, wrote, “We expect a bigger percentage revenue benefit to HOOD vs. COIN given that the survey showed that users on that platform are more inclined to fund prediction markets portfolio with fresh money.”
