Svmuu News: Bernstein noted that Robinhood is poised to experience a “strong tailwind” as trading volume on prediction markets hits record highs during the World Cup. Data shows that daily trading volume in prediction markets during the early stages of the FIFA World Cup rose from $2.2 billion on June 11 to $4.8 billion on June 12, setting a new record and surpassing the $1.4 billion trading volume seen during the previous Super Bowl. Analysts noted that since its launch, the prediction market has become one of Robinhood’s fastest-growing revenue streams. The firm projects that Robinhood’s prediction market revenue will grow from $150 million in 2025 to $586 million in 2026, representing a year-over-year increase of approximately 286%, and is projected to account for 17% of trading-related revenue and 10% of total revenue in 2026. Bernstein believes that Robinhood’s partnership with Rothera, an exchange and clearinghouse regulated by the U.S. Commodity Futures Trading Commission (CFTC), is one of its competitive advantages. Since its launch on May 28, Rothera has traded approximately 200 million contracts within 18 days, with FIFA World Cup and MLB-related contracts accounting for nearly all of the trading volume. Analysts noted that Robinhood’s core strength lies in its distribution capabilities; strategies such as its massive user base, a $0.01 commission per contract, and up to a 50% fee discount for Gold members help drive user engagement. Additionally, Bernstein noted that competition in the prediction markets sector is intensifying, with examples including Polymarket launching contracts for private company events and Kalshi introducing cryptocurrency perpetual contracts. The firm expects the World Cup to generate over $3 billion in new betting volume for prediction markets and drive an increase in consumer trading volume across the entire industry of $5 billion to $10 billion. (The Block)