According to a Reuters report citing two knowledgeable sources, the SEC has postponed the debut of 24 prediction market ETFs that were expected to commence trading this week.
Applications for these funds had been filed in February by three major issuers—Bitwise, Roundhill, and GraniteShares. These firms planned to offer ETFs tracking odds from prediction markets on events such as the 2028 presidential election, tech industry layoffs, and recession likelihood.
Typically, under SEC rules, ETF applications become effective after a 75-day waiting period unless the commission intervenes. Just before this deadline, the SEC intervened, halting the process to conduct further reviews of how these innovative products fit within existing regulations.
This delay is indicative of broader regulatory tensions surrounding prediction markets. In April, the Commodity Futures Trading Commission filed lawsuits against states like New York and Wisconsin for their attempts to regulate prediction markets at a state level, asserting that it has sole jurisdiction over such platforms.
In this legal challenge, the CFTC specifically opposes New York’s efforts to apply its gambling laws to federally registered prediction market exchanges. The ongoing dispute underscores the regulatory ambiguity faced by prediction market products as they seek integration into mainstream finance.
In a related development, the U.S. Senate recently acted to ban members from participating in prediction markets, citing potential misuse of nonpublic information for personal gain.
Despite these regulatory hurdles, prediction markets have gained significant traction, with platforms like Polymarket and Kalshi recording billions in trading volume early in 2026. The delay in ETFs suggests that regulators are proceeding cautiously regarding the integration of prediction-based financial products into traditional markets, even as these platforms continue to grow rapidly.