finance
SEC Delays Approval Process for Prediction Market ETFs from Bitwise, Roundhill, GraniteShares
The U.S. Securities and Exchange Commission has delayed the approval of several exchange-traded funds tied to prediction markets. The ETFs, filed by Bitwise Asset Management, Roundhill Investments and GraniteShares, would enable wagers on events like elections and economic shifts. The agency requested more details on operations and risks without rejecting the proposals outright.
May 4, 6:56 AM·1m read2 sources
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The United States Securities and Exchange Commission delayed the approval process for several new exchange-traded funds based on prediction markets. The delayed ETFs were filed by Bitwise Asset Management, Roundhill Investments, and GraniteShares. The 75-day review deadline for the ETF filings was set to expire this week.
The ETF filings would allow investors to make wagers on election results, economic recessions, mass layoffs at tech firms, and oil price surges. Under normal circumstances, the ETF filings would automatically move forward after a 75-day review window unless the SEC intervened.
The SEC requested additional details from issuers on how the ETFs would function, how they would manage event contracts, and what type of disclosure would be necessary for investors to understand the risk.
The SEC's action does not constitute an outright rejection of the ETF filings. Prediction market ETFs involve yes/no predictions on events. Investors in prediction market ETFs can lose their entire investment if the predicted event does not occur.
Prediction markets have grown in popularity on platforms including Kalshi and Polymarket. U.S. presidential election. The article was published on May 4, 2026 at 10:40 AM.
