Roundhill Investments is set to launch the first U.S. exchange-traded funds (ETFs) tied to prediction markets next week, with two other asset managers preparing similar products. According to a filing with the U.S. Securities and Exchange Commission (SEC),
Roundhill will list six funds tied to whether Democrats or Republicans control the White House, Senate and House.
The launch is set for May 5, according to Bloomberg ETF analyst James Seyffart. The funds are the Roundhill Democratic President ETF (BLUP), Republican President ETF (REDP), Democratic Senate ETF (BLUS), Republican Senate ETF (REDS), Democratic House ETF (BLUH) and Republican House ETF (REDH).
The House and Senate products are tied to who controls them after the Nov. 3, 2026, elections, while the presidential products point to the Nov. 7, 2028, race.
The funds gain exposure through swap agreements referencing binary event contracts traded on CFTC-regulated markets. These contracts settle at $1 if an outcome occurs and $0 if it does not.
Source: sec.gov
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