Galaxy Digital has launched an institutional over-the-counter prediction-market trading desk, giving hedge funds, family offices, and other large investors access to event-driven contracts in sizes and with a level of discretion unavailable through retail interfaces.
The firm also executed a $10 million trade with crypto-native hedge fund Arca at launch, taking a position tied to the passage of the Clarity Act on Kalshi, according to a Tuesday announcement.
Galaxy's OTC desk acted as principal counterparty, enabling Arca to build the position on a bilateral basis at institutional scale.
"Event-driven markets are becoming core to how sophisticated investors express macro views, and they deserve institutional infrastructure to match," said Jason Urban, global co-head of digital assets at Galaxy.
Arca chief investment officer Jeff Dorman said prediction markets were the most appropriate hedging vehicle for the firm's Washington-focused positions, but that existing retail liquidity was insufficient for a fund of its size.
