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DraftKings Launches 5-Minute Crypto Markets as Short-Term Contracts Explode in Volume

By jili tutorial · August 31, 2026

DraftKings Launches 5-Minute Crypto Markets as Short-Term Contracts Explode in Volume

DraftKings is accelerating its push into prediction markets with the launch of 5-minute cryptocurrency contracts. In addition to ramping up advertising in states without legal sports betting, the company now allows users to wager on whether the price of Bitcoin or Ethereum will rise or fall within a five-minute window. These new markets, introduced this week, are offered through a partnership with Crypto.com, which self-certified the contracts with the U.S. Commodity Futures Trading Commission (CFTC) in April.

Industry analyst Dustin Gouker noted on social media that these ultra-short-term crypto markets are technically classified as hedging instruments, not gambling. Meanwhile, Polymarket began offering similar 5-minute contracts earlier this year alongside its existing 15-minute markets, and Kalshi also provides 15-minute crypto markets while expanding into gold, silver, and oil.

Short-Term Crypto Markets See Explosive Volume Growth

Both Kalshi and Polymarket first introduced 15-minute crypto markets last year, and trading volumes have skyrocketed since. By April, short-term contracts accounted for over half of all crypto trading on both platforms. Kalshi’s 15-minute Bitcoin trading volume reached $643 million in April and surged to more than $4 billion by July. When including all cryptocurrencies, the 15-minute markets saw $4.69 billion in volume last month — representing more than 75% of total crypto activity.

“Prediction market platforms have managed to take a speculative asset and inject even more mania into its trading,” said Amanda Fischer, policy director at investor advocacy group Better Markets, in comments to the Financial Times.

Amir Hajian, a researcher at crypto market-maker Keyrock, described the growth as “explosive,” adding, “Let’s just call it what it is: these instruments are pure speculation.”

Kalshi’s Commodity Markets Also Gain Traction

Building on the success of its crypto products, Kalshi launched 15-minute markets for gold, silver, and oil earlier this month. Within two weeks, they became the most popular non-crypto, non-sports markets on the platform, according to Gaming America. Gold has emerged as the most traded commodity, with daily trading volume hitting a new high of over $18 million on August 26 — up from less than $1 million when the market debuted on August 4.

The rapid resolution of these contracts mimics casino-style gameplay. One trader told Gaming America that he uses a random number generator to decide whether to bet up or down. Engineer Max Wojcik shared with the Financial Times that he relies on AI chatbots — Claude, Gemini, and ChatGPT — to scrape weeks of price data and compare their results before trading.

While individual users try to devise systems for occasional payouts, sophisticated market makers are capturing the bulk of profits. Hajian noted that large trading firms target “microstructure inefficiencies” between exchanges, exploiting price discrepancies. As more platforms go live, cross-platform trading opportunities multiply. ParlayX aims to capitalize on this by offering traders a centralized dashboard to manage multiple accounts.

DraftKings Races to Build the Ultimate Super App

DraftKings has stated that prediction markets are a key part of its strategy to attract new users. The move into crypto markets — which are not available on its sportsbook — opens a new vertical for the company.

“Everyone is in a race to become the next super app to rule them all,” Fischer said. “Trad-fi is copying crypto, and vice versa.”

One of the first markets DraftKings self-certified for its standalone exchange focused on microbets. This could allow wagering on extremely short timeframes within live sports, such as the next play in football, the next pitch in baseball, or the next possession in basketball. Ahead of the new NFL season, DraftKings has intensified advertising for its prediction platform, especially in states without legal sports betting. To compete with Kalshi, Polymarket, and others, the company is offering large sign-up bonuses.

New ads targeting California, Florida, Georgia, and Texas offer new customers $200 after a $5 first trade, with fine print noting that event contract trading is offered by DraftKings Predictions, a CFTC-registered entity. The battle for users in major states like California is heating up, with Kalshi also increasing its lobbying efforts there.

However, DraftKings’ launch has already drawn two lawsuits alleging that its sports prediction markets constitute illegal sports betting under California law. Similar legal challenges against Kalshi and other operators threaten to slow the prediction market boom. For now, companies continue charging ahead, eager to capture a piece of the action.

This article originally appeared on CasinoBeats.