Launch of US prediction market ETFs delayed by SEC review

The launch of more than 24 ETFs linked to prediction markets in the U.S. has been put on hold after the Securities and Exchange Commission (SEC) requested additional information, Reuters reported. Three asset management firms—Roundhill Investments, GraniteShares, and Bitwise—applied to launch the ETFs in February, with a 75-day automatic approval deadline that was set to expire this week. These funds are designed to hold derivatives tied to the outcomes of real-world events, such as midterm and presidential elections, economic recessions, and tech industry restructuring. Potential investment risks include insider trading and the possibility of catastrophic losses. However, sources familiar with the matter reportedly believe the delay is likely to be temporary.