SEC · Bloomberg · Cointelegraph
SEC seeks public comment as it weighs prediction market ETFs
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◌ Single Source
Bitwise, Roundhill Investments and GraniteShares had their prediction market ETF applications put on hold by the SEC earlier this month.
Key facts
- Prediction markets have become one of crypto’s hottest use cases over the past 18 months and now consistently record more than $15 billion in monthly trading volume across markets spanning
- Bloomberg ETF analyst Eric Balchunas said the SEC is “clearly wrestling” with how to handle the new asset class, similar to how it navigated issues with spot crypto ETFs before approving them
- Bitwise, Roundhill Investments and GraniteShares had their prediction market ETF applications put on hold by the SEC earlier this month
- Atkins said ETFs have been a “major driver” of innovation in the securities markets, boosting capital and broadening investor choice while noting that ETF assets have tripled since 2019
Summary
The US securities regulator is delaying the launch of a recent wave of “novel ETFs,” including those that allow investors to bet on the outcome of events, to consider the implications of introducing the new products. SEC Chair Paul Atkins said that “novel products raise novel questions” and instructed his staff to seek public feedback on how the regulator should respond to these applications. Bitwise filed in February for a series of prediction market ETFs under the PredictionShares brand to track US election results, while Roundhill Investments and GraniteShares also filed for prediction market ETFs that month. Prediction markets have become one of crypto’s hottest use cases over the past 18 months and now consistently record more than $15 billion in monthly trading volume across markets spanning from sports and elections to financial results and cultural events.