Bitwise Asset Management Seeks to Launch Prediction Market ETFs
Bitwise plans to launch ETFs tied to U.S. election prediction markets for the 2026 and 2028 cycles.
Bitwise Asset Management is seeking regulatory approval to launch exchange-traded funds (ETFs) tied to prediction markets focused on upcoming U.S. elections in 2026 and 2028.
The proposed products would provide investors exposure to event-driven contracts related to electoral outcomes, marking a new intersection between political forecasting markets and traditional financial instruments.
If approved, the ETFs would be among the first to package prediction market exposure into publicly traded securities. Bitwise most recently released Chainlink, a blockchain ETF that made a big splash upon announcement.
What Bitwise Is Proposing
Bitwise has filed to list ETFs designed to track performance tied to prediction market contracts related to U.S. election outcomes.
Key elements of the proposal include:
- Exposure to election-based event contracts
- Focus on the 2026 midterm elections and 2028 presidential race
- Structuring within the ETF framework familiar to traditional investors
Rather than allowing investors to directly place event bets, the ETF structure would provide indirect exposure through regulated financial markets.
Bridging Prediction Markets and Wall Street
Prediction markets allow users to trade contracts tied to real-world outcomes, with prices reflecting crowd-based probability estimates.
Platforms such as Kalshi operate federally regulated event contracts in the United States under oversight from the Commodity Futures Trading Commission (CFTC).
Bitwise’s proposal would effectively integrate that ecosystem into the broader ETF market, potentially bringing:
- Institutional investor participation
- Increased liquidity
- Broader market legitimacy
However, it could also intensify regulatory scrutiny.
Regulatory Hurdles Ahead
Election-based financial products remain politically sensitive.
Regulators will likely evaluate:
- Market integrity safeguards
- Manipulation risks
- Investor protection standards
- The distinction between hedging tools and speculative instruments
Election-related prediction markets have already drawn controversy, with some lawmakers arguing they blur the line between financial derivatives and gambling.
An ETF structure could amplify those debates.
Why This Matters
If approved, the ETFs could:
- Normalize political event contracts within traditional finance
- Increase trading volumes tied to election outcomes
- Expand retail and institutional access
The proposal reflects the continued mainstreaming of alternative financial products that once existed primarily within crypto-native or niche trading platforms.
It also highlights how prediction markets are evolving beyond retail-facing apps into structured capital market instruments.
Political and Market Implications
Election prediction markets have historically attracted attention for their perceived forecasting accuracy compared to polling.
By offering ETF exposure tied to such markets, Bitwise would be inviting mainstream investors to incorporate political event risk into portfolio strategies.
Critics may question whether financializing election outcomes raises ethical or governance concerns, while proponents argue that market-based probability tools enhance transparency.
Bottom Line
Bitwise Asset Management is seeking to launch ETFs tied to U.S. election prediction markets for 2026 and 2028.
If regulators approve the proposal, it would mark a significant step in integrating political event contracts into traditional financial markets, and could reshape how investors engage with election-related risk.
Tags/Keywords
Players trust our reporting due to our commitment to unbiased and professional evaluations of the iGaming sector. We track hundreds of platforms and industry updates daily to ensure our news feed and leaderboards reflect the most recent market shifts. With nearly two decades of experience within iGaming, our team provides a wealth of expert knowledge. This long-standing expertise enables us to deliver thorough, reliable news and guidance to our readers.
Latest News
