Bitwise, Granitshares Eyes $63B Sector With New Prediction Markets ETF Filing

Asset managers Bitwise and Granitshares have submitted new filings with the U.S. SEC to launch a prediction markets ETF. This especially comes with the upcoming midterm elections, as they look to partake in the liquidity that comes with election betting.

Prediction Market ETF Push Grows With Bitwise, GranitShares Filing

In a recent development, Bitwise and GraniteShares filed with the US Securities and Exchange Commission to offer funds linked to event contracts based on the outcome of US elections. This comes after Roundhill had filed first.

The funds listed are for the 2028 U.S. presidential election and the 2026 congressional midterm elections, as well as products for whether Democrats or Republicans will win the presidency in 2028 and whether Democrats or Republicans will control the Senate and the House in 2026. This also comes at a time when the trend of crypto prediction markets has grown.

Bitwise filed for a new series of ETFs called PredictionShares, which consists of six prediction market-style ETFs listed on NYSE Arca.

GraniteShares also filed a prospectus offering six similar funds with the same structure, based on the outcome of the US elections. The cost of shares in each of these funds on a particular day is a reflection of the market’s probability of the outcome, ranging from 0 to 1.

Bloomberg analyst James Seyffart highlighted the growing trend of asset managers filing for prediction market ETF stating that this would not be the last that would be seen.

Betting Markets Attract Broader Investor Participation

The $63 billion market sector has continued to gain more attention from investors amid its rapid growth. Crypto firms, especially, have begun to launch platforms to integrate this, especially with the CFTC’s positive regulatory signals.

In January, CoinGape reported that the Ripple team would launch its own prediction market on the XRPL. This would enable XRP and RLUSD investors to interact with the real-world market. The beta platform already went live on January 19.

To add, while asset managers seek ETFs, crypto exchanges are launching their own prediction market platform to challenge Kalshi, Polymarket, and others. Last December, Gemini got its CFTC license to launch its own platform.  Even top US exchange Coinbase has announced plans for its betting markets platform.