SEC delays launch of 24+ prediction market ETFs

The SEC has delayed over 24 prediction market ETFs from firms like Roundhill and Bitwise, requesting more details on structure and risks. The delay is expected to be temporary.

The U.S. Securities and Exchange Commission (SEC) has postponed the launch of more than two dozen prediction market exchange-traded funds (ETFs) from issuers such as Roundhill Investments, Bitwise Asset Management, and GraniteShares. These ETFs, linked to platforms like Kalshi and Polymarket, would give investors exposure to event contracts based on real-world outcomes, including elections, economic data, tech layoffs, and oil prices. The SEC is seeking additional information regarding the structure, mechanics, and risk disclosures of these products to ensure investors fully understand their nature and associated risks. The automatic 75-day approval window was set to expire this week, but the SEC intervened to request further details. Although this has delayed the anticipated launch, industry sources expect the postponement to be temporary as the SEC continues its review and discussions with issuers.