Wintermute Enters Prediction Markets as Liquidity Provider

Wintermute, the crypto liquidity provider and trading firm that handles $3.5 trillion in annual trading volume, is providing liquidity on prediction markets. The firm said it is extending its institutional trading to prediction markets and will provide two-sided markets across event contracts on leading venues, without specifying the platforms.

Jake Ostrovskis, head of OTC trading at Wintermute, said prediction markets have the "demand profile" of a major asset class but the liquidity profile of an "early-stage one." He added that for these markets to become a reliable real-time source of probability estimates they need sustained two-sided liquidity, which tightens spreads, supports larger trade sizes and improves the signal embedded in market prices.

Wintermute described prediction markets as moving from a "niche forecasting tool" into a broader venue for trading event risk and said it will post continuous bid and offer prices across event contracts.

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