Cathie Wood’s ARK Invest has reinforced its conviction in prediction markets by backing Kalshi’s massive new funding round.

ARK Invest Backs Kalshi’s $1 Billion Series F

Prediction market platform Kalshi last week secured $1 billion in Series F financing at a $22 billion valuation, with Coatue leading the round alongside prominent investors including Sequoia Capital, Andreessen Horowitz, IVP, Paradigm, Morgan Stanley and ARK Invest.

On Tuesday, Wood celebrated the investment on X, writing, “ARK is excited to participate in Kalshi’s latest funding round.”

She added that “prediction markets are emerging as a powerful new layer of financial infrastructure,” noting Kalshi’s role in real-time price discovery tied to events, probabilities and shifting global conditions.

“Kalshi is at the forefront of this innovation, and we’re thrilled to support,” Wood wrote.

Why ARK Sees Kalshi As A Major Financial Opportunity

In its investment thesis, ARK described Kalshi as “an early-stage opportunity to invest in new financial market infrastructure,” highlighting the company’s ability to enable users to trade on outcomes that directly impact their lives, businesses and worldviews.

ARK pointed to several catalysts that could accelerate Kalshi’s growth, including regulatory licensing, broker distribution, intuitive product design, and adjacent market opportunities estimated at over $180 billion annually.

The firm said these factors create the potential for “nonlinear growth.”

Kalshi Joins ARK’s High-Profile Private Portfolio

Kalshi now represents 4.34% of ARK Venture Fund holdings as of April 30, placing it behind SpaceX at 13.76% and OpenAI at 9.29%.

Kalshi operates as a federally regulated prediction market, offering event-based contracts that allow users to trade on binary outcomes tied to real-world events.

This includes Federal Reserve rate decisions, inflation benchmarks and presidential election results.

Bernstein projected in April that prediction market trading volumes could surge from roughly $51 billion in 2025 to nearly $1 trillion by 2030.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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