• Webull partners with CFTC-regulated Kalshi to launch hourly crypto contracts
  • New binary options allow bets on Bitcoin and Ethereum price movements within one-hour windows
  • Move comes as prediction markets gain traction among retail investors

Webull's Strategic Pivot

Webull is making its boldest move yet into alternative trading instruments by introducing hourly expiry contracts on Bitcoin and Ethereum through its partnership with Kalshi. The brokerage, which has built its reputation on commission-free stock and options trading, is now venturing into the fast-growing prediction markets space - a sector that's drawing increasing attention from retail traders.

"We're seeing unprecedented demand for short-duration trading products," said a Webull executive familiar with the rollout who asked not to be named because the details aren't public. The new contracts will let users speculate on whether crypto prices will finish above or below predetermined levels at hourly intervals, providing more frequent trading opportunities than traditional options.

The Mechanics Behind the Move

The hourly contracts function as binary options, with traders purchasing either "Yes" positions (betting the price will exceed the target) or "No" positions (betting it won't). Unlike conventional crypto trading, these instruments don't require holding the underlying assets, potentially lowering barriers to entry. Webull plans to launch the products in phases, starting with Bitcoin and Ethereum before potentially expanding to other cryptocurrencies.

This expansion builds on Webull's February 2025 partnership with Kalshi, the first CFTC-regulated prediction market exchange. The timing appears strategic - Webull's Q1 2025 earnings showed strong growth in options trading volume (up 8% YoY) and daily active trades (up 44% YoY), suggesting its user base is increasingly comfortable with sophisticated instruments.

Regulatory Tightrope

The launch comes amid heightened scrutiny of prediction markets. While Kalshi's CFTC oversight provides regulatory cover, rival Robinhood has faced questions about its similar offerings. Webull appears to be treading carefully, emphasizing education and starting with crypto rather than more politically sensitive event contracts.

Industry analysts note the partnership could give Webull an edge in attracting active traders. "Hourly crypto contracts fill a gap between traditional options and sports betting-style prediction markets," said one fintech analyst who declined to be named due to employer restrictions. "It's a smart play for engagement, though the regulatory landscape remains uncertain."

Webull and Kalshi have broader ambitions, including plans to expand into economic event contracts and potentially make Webull a Kalshi clearing member. For now, all eyes are on how traders respond to these high-frequency crypto instruments - and whether regulators will give them room to run.