Feb 18, 2026
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BULLISH 📈 : Bitwise and GraniteShares file for election outcome ETFs
Two major asset managers, Bitwise and GraniteShares, are entering the prediction market sector by filing for ETFs tied to US political elections with the SEC. This follows a similar move by Roundhill Investments, indicating growing interest in event-based contracts in traditional financial markets.
- Bitwise plans to launch "PredictionShares," consisting of six ETFs focused on the 2026 midterm and 2028 presidential elections. These funds will invest in binary event contracts traded on CFTC-regulated exchanges.
- GraniteShares proposes a similar structure, leveraging its experience with niche investment vehicles. The ETFs will reflect election outcomes, settling based on the winning political party.
The aim is to capitalize on the popularity of prediction markets, which are attracting retail investors. While crypto firms like [Crypto.com](https://holder.io/coins/) have launched platforms, these ETFs offer regulated access through brokerage accounts.
Despite potential liquidity benefits from traditional finance, regulatory challenges remain. The SEC's cautious stance on crypto and event-based derivatives poses uncertainties for approval.
