DraftKings has added five-minute crypto contracts to its prediction market platform. Users can now wager on whether Bitcoin or Ethereum will rise or fall over the next five minutes. The markets went live this week through a partnership with Crypto.com, which independently certified them with the CFTC in April.
Polymarket launched similar contracts earlier this year, while Kalshi offers 15-minute crypto markets and has expanded into gold, silver and crude oil. Volume on these instruments has multiplied: Kalshi's 15-minute Bitcoin trading hit $643 million in April and more than $4 billion in July. Last month all 15-minute crypto markets on the platform reached $4.69 billion, more than 75% of its total crypto volume.
Gold overtakes everything except crypto and sports
Kalshi added 15-minute contracts on gold, silver and crude oil in early October. Within two weeks they became the most popular markets after crypto and sports. Daily volume for gold climbed from $1 million on 4 August to a new high of $18 million on 26 August.
The fast resolution mimics casino mechanics. One trader told Gaming America he uses a random number generator to pick direction. Engineer Max Wojcik told the Financial Times he feeds weeks of price data to Claude, Gemini and ChatGPT, compares the results and trades on them.
Amanda Fischer of Better Markets said the platforms 'took a speculative asset and injected even more mania into trading it'. Keyrock researcher Amir Hajian called the growth 'explosive' and added: 'This is pure speculation.'
DraftKings has ramped up advertising for its prediction market platform ahead of the NFL season, particularly in states without legal sports betting — California, Florida, Georgia, Texas. The first-trade bonus reaches $200. The company already faces two lawsuits in California claiming its sports prediction markets violate the state's betting ban.
