Robinhood's 13th-Ranked $5.47B Trading Volume Surge Drives NFL and College Football Prediction Market Expansion Despite 6.54% Stock Slide

Robinhood Markets (HOOD) reported a 6.54% decline in its stock price on August 19, 2025, despite a 36.01% surge in trading volume to $5.47 billion, ranking 13th in the market. The broker has expanded its prediction markets by introducing NFL and college football outcome trading through Kalshi, a CFTC-regulated platform. This move positions Robinhood to compete with traditional sports betting platforms by offering contracts treated as commodities rather than wagers, enabling daily trading from 8 a.m. to 3 a.m. ET. The company emphasized its goal to become a one-stop hub for financial transactions, leveraging its existing two billion traded contracts since 2024.

The launch follows Robinhood’s broader strategy to enter regulated prediction markets, differentiating itself from unregulated crypto-native platforms. By partnering with Kalshi, the firm avoids state-specific sports betting regulations while tapping into high-demand sports events. Executives highlighted the potential to capture a share of the growing U.S. sports betting market, where NFL and college football drive significant engagement. However, the rollout has sparked debates over regulatory distinctions between prediction markets and traditional betting, with critics noting the bypassing of state-level oversight.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns, with a 10.5% gain. While the strategy captured some volatility, it also faced significant drawdowns, highlighting the importance of risk management in such a high-turnover approach.