The U.S. Securities and Exchange Commission is asking for public comments before deciding whether to approve a new type of prediction market ETF linked to elections and real-world events.
SEC Chair Paul Atkins said these “novel products” raise important regulatory questions, so the agency is delaying launches while it gathers feedback from the industry and public. Companies like Bitwise, Roundhill Investments, and GraniteShares have already applied for prediction market ETFs.
Prediction markets have been one of crypto’s fastest-growing areas in the past 18 months, with over $15 billion in monthly trading volume across sports, politics, finance, and culture. A prediction market ETF would let traditional investors access these event-based contracts through regular brokerage accounts.
Bloomberg ETF analyst Eric Balchunas compared this to the SEC’s earlier approach to spot Bitcoin ETFs, saying regulators want to be fully comfortable before “opening the barn door.”
The SEC’s careful approach comes as prediction market platform Kalshi faces legal challenges in several U.S. states. Regulators are also said to be looking at new exemptions that could one day allow tokenized stock trading on blockchains.
SEC reviewing implications of delayed prediction market ETFs, Atkins says https://t.co/5yX3rD4596
— The Block (@TheBlockCo) May 21, 2026
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