Barclays analysts have highlighted the growing influence of prediction markets, which are increasingly competing with traditional speculative investment tools like leveraged ETPs. Since the 2024 U.S. presidential election, prediction platforms such as Kalshi and Polymarket have seen their monthly notional trading volumes soar to over $24 billion in April, a significant rise from $5 billion a year ago. The surge in prediction markets is attributed to viral adoption among younger generations, with nearly one-third of Gen Z and millennials engaging in or considering these markets and sports betting. Despite this growth, prediction markets still lag behind retail flagship products like 0DTE options, with the S&P 0DTE markets reaching a trading volume of $57 trillion in March.