Cboe Launches Prediction Market to Rival Kalshi and Polymarket

Cboe Global Markets has entered the prediction markets industry with the launch of its new outcome-based trading products suite, Cboe Predicts. The derivatives exchange announced the debut of binary option contracts based on the Mini-S&P 500 Index (XSP), positioning itself as a direct rival to platforms like Kalshi and Polymarket.

This marks Cboe’s re-entry into binary options. The exchange first introduced similar contracts on the S&P 500 and VIX in 2008 but withdrew them after failing to attract sufficient investor interest. The initial offering includes contracts under the symbols XSPBW and XSPBX, where users select ‘yes’ or ‘no’ on whether the S&P 500 will reach a specific level in the near term.

Cboe’s contracts are currently available on Interactive Brokers and will be rolled out on Charles Schwab in the coming months, with additional retail brokerage platforms expected to follow. “Following the success of SPX 0DTE options, we have seen continued customer demand for shorter-dated, outcome-based trading, creating a natural extension for Cboe to introduce XSP binary options,” said JJ Kinahan, head of alternative investment products at Cboe.

The launch comes as traditional finance giants increasingly move into prediction markets. Charles Schwab is introducing all-or-nothing options contracts on the S&P 500, while Meta CEO Mark Zuckerberg has unveiled a prediction market app called ‘Arena.’ Analysts view Cboe Predicts as Wall Street’s response to retail appetite for simple, high-engagement trading formats spanning options, betting, and information markets.

Kalshi and Polymarket have seen explosive growth, recording combined monthly global trading volume of about $24 billion in April, up from less than $5 billion in September last year, according to Pew Research Center data. Cboe’s entry intensifies competition in this rapidly expanding sector.

Source: https://coingape.com/cboe-launches-prediction-market-to-rival-kalshi-and-polymarket/