March 27 (Reuters) - Intercontinental Exchange ( ICE ) said on Friday it had invested $600 million in prediction markets platform Polymarket, as the New York Stock Exchange parent expands into the fast-growing event-based trading segment.

The funding is part of the exchange operator's previously announced plan to invest up to $2 billion in Polymarket, the company said.

Prediction markets have shifted from a niche corner of crypto and academic finance into a rapidly growing trading segment in under two years, with volumes and user activity surging.

ICE said the investments in Polymarket are not expected to have a material impact on the exchange operator's financial results or capital return plans.

The $600 million investment is part of the prediction markets platform's latest funding round, and the valuation will be disclosed once completes its fundraising, ICE said.

Prediction markets represent a potential new frontier for exchanges ​in derivatives trading. Analysts say the products can draw a wider pool of ​retail traders ⁠and boost trading volumes, offering exchanges a chance to diversify revenue as competition intensifies in traditional futures and options markets.

(Reporting by Manya Saini in Bengaluru; Editing by Anil D'Silva and Leroy Leo)