Crypto.com Expands Sports Event Trading Lineup

Posted on: January 7, 2025, 04:12h. 

Last updated on: January 7, 2025, 04:12h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Crypto.com is rapidly adding to its sports event contracts lineup, today announcing the addition of more games for clients to wager on beyond the Super Bowl.

Crypto.com
Crypto.com Arena, home of the Los Angeles Lakers. The brokerage firm expanded its menu of football event betting contracts. (Image: Los Angeles Magazine)

The cryptocurrency brokerage firm said today it added contracts on NFL conference championship games as well as bowl games and the college football playoffs (CFP). There are two semifinal games this week in the CFP followed by the championship game on Monday, Jan. 20 in Atlanta.

The NFL playoffs commence on Saturday with the AFC and NFC conference championship games slated for Sunday, Jan. 26. Crypto.com did not mention the possibility of adding more NFL event contracts as the playoffs proceed. Event contracts are different than traditional sports wagers and those differences underscore the reasons why financial services firms such as Crypto.com are getting into the business.

“An event contract is a type of financial derivative that allows traders to speculate on the outcome of a specific event. These contracts are generally structured around ‘Yes’ or ‘No’ outcomes, and fluctuate in price based on the projected outcome of the event,” according to Robinhood. “Event contracts then pay out if the position held matches the correct outcome of the event (for example, which candidate will win the 2024 presidential election); otherwise, they expire worthless.”

Crypto.com Making Presence Felt in Event Contracts

Crypto.com’s expansion of its sports event contracts menu arrives about two weeks after the financial services firm announced its foray into this form of wagering. The first contract offered by the company was on the Super Bowl.

The company described the new sports event trading offering as the first of its kind, noting it will be offered by Crypto.com | Derivatives North America, which is regulated by the Commodities and Futures Trading Commission (CFTC).

“First of its kind” is an accurate description because Crypto.com is the first brokerage house to allow event contracts to be purchased in digital currencies, of which approximately 350 are listed on the platform. Winning bets are paid out in US dollars.

Football is the most wagered on sports in the US, but Crypto.com did not mention if it plans to broaden event contracts menu when football season ends.

Event Contracts Surging in Popularity

As highlighted by the boom in activity on platforms such as Kalshi and Polymarket during the 2024 presidential election season, event contracts are surging in popularity among investors and bettors.

One of the reasons for that is the assets are comparable to traditional derivatives where prices fluctuate from day-to-day, extending  the holder’s period of engagement and potential upside. For example, a Super Bowl contract on Crypto.com could decrease in value today, but increase in several days or a week. Conversely, a traditional sports wager on a specific game is settled after that event, implying a level of finality not found with event contracts.

Other financial services firms, including Interactive Brokers and Robinhood, are getting in on the act and are expanding event contract offerings with some eyeing a broader reach into the world of sports betting.