Bernstein: Regulatory Clarity Spurs Institutional Investment as Prediction Markets Evolve into Information Markets, Fueling Global Crypto Liquidity

According to a Bernstein note published via The Block, regulatory clarity is expected to unlock greater institutional investment, accelerate asset tokenization, and deepen integration with retail brokers within the crypto ecosystem. As these dynamics unfold, prediction platforms are shifting toward information-driven trading venues, a development that could lift global liquidity and support mainstream adoption.

Chhugani-led team notes that the prediction market is evolving into a broader information market; demand now spans economics, culture, corporate activity, and financial metrics beyond politics and sports. The market uses binary yes/no contracts; if the event occurs, a payoff of $1; if not, $0; contract prices reflect the probability of the outcome. This shift could position prediction markets as credible price-discovery mechanisms for multiple sectors.

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