Cboe Enters Prediction Markets to Expand Beyond Options
VIX owner Cboe launches its first prediction markets products, targeting surging consumer demand in the fast-growing sector.
Cboe Global Markets, the exchange operator behind the widely watched VIX volatility index, made its first move into prediction markets Wednesday, launching new products designed to capitalize on explosive growth in consumer-driven event wagering. The Chicago-based company is betting that its established trading infrastructure can give it a competitive edge in a sector that has drawn enormous retail interest over the past year.
The launch marks a significant strategic pivot for Cboe, which has built much of its recent momentum on the runaway popularity of zero-day options — contracts that expire within a single trading session. Prediction markets represent a natural adjacency for the exchange, allowing it to serve a growing audience of traders who want to take positions on real-world outcomes rather than purely on asset prices.
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Prediction markets have surged into mainstream finance conversations following high-profile platforms like Polymarket gaining traction during recent election cycles. Regulated exchanges entering the space could lend the sector greater credibility and liquidity, attracting both retail participants and institutional players who have so far stayed on the sidelines due to regulatory uncertainty.
For Cboe, the move also underscores a broader industry race to capture demand from younger, engagement-driven traders accustomed to platforms that blur the line between investing and event speculation. By leveraging its existing regulatory relationships and clearing infrastructure, Cboe could position itself as the go-to regulated venue as prediction markets mature into a mainstream financial product.
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