SEC delay on prediction markets ETFs echoes a long-fought bitcoin fund battle
Prediction markets ETFs may soon be coming to retail investors and even into retirement plans, but maybe just not as fast as anticipated.
The Securities and Exchange Commission during the second Trump administration has sought to distinguish itself from Biden era regulators with what it calls a move away from the “regulatory creep” that it says has held back markets and innovation. But it caught some in the financial industry off guard on Tuesday when it delayed the launch of 24 prediction markets ETFs, saying it needed more time to study the products before they were released to investors.
Roundhill Investments, Bitwise, and GraniteShares had all filed with the SEC in February to launch funds tied to prediction markets covering elections, economic data, and other real-world events. Under SEC rules, ETFs are automatically effective 75 days after filing unless otherwise halted by the SEC. That 75-day window was due to expire last week. The SEC’s intervention should not be surprising, according to ETF experts, even if the SEC under the Trump administration is focused on steps to ease market access, as well as less aggressive oversight of novel financial products, such as in the crypto **** e.
Prediction markets ETFs do represent a new kind of regulatory challenge. Unlike traditional ETFs, these investments are tied to event contracts and essentially place bets on real-world events. Some of the most notable, but also controversial, contracts on predictions markets like Kalshi are the ones related to politics, such as election results, a focus for the ETFs.
https://www.cnbc.com/2026/...
Prediction markets ETFs may soon be coming to retail investors and even into retirement plans, but maybe just not as fast as anticipated.
The Securities and Exchange Commission during the second Trump administration has sought to distinguish itself from Biden era regulators with what it calls a move away from the “regulatory creep” that it says has held back markets and innovation. But it caught some in the financial industry off guard on Tuesday when it delayed the launch of 24 prediction markets ETFs, saying it needed more time to study the products before they were released to investors.
Roundhill Investments, Bitwise, and GraniteShares had all filed with the SEC in February to launch funds tied to prediction markets covering elections, economic data, and other real-world events. Under SEC rules, ETFs are automatically effective 75 days after filing unless otherwise halted by the SEC. That 75-day window was due to expire last week. The SEC’s intervention should not be surprising, according to ETF experts, even if the SEC under the Trump administration is focused on steps to ease market access, as well as less aggressive oversight of novel financial products, such as in the crypto **** e.
Prediction markets ETFs do represent a new kind of regulatory challenge. Unlike traditional ETFs, these investments are tied to event contracts and essentially place bets on real-world events. Some of the most notable, but also controversial, contracts on predictions markets like Kalshi are the ones related to politics, such as election results, a focus for the ETFs.
https://www.cnbc.com/2026/...
25 days ago
