Bitwise and GraniteShares vie for dominance in emerging prediction market ETF sector

Bitwise and GraniteShares vie for dominance in emerging prediction market ETF sector

Bitwise and GraniteShares aim to launch six new ETFs focused on U.S. election outcomes, investing 80% in binary event contracts. What could this mean for market dynamics?

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Bitwise and GraniteShares have submitted applications to the US Securities and Exchange Commission for new exchange-traded funds (ETFs) linked to event contracts regarding US elections. Each company seeks to introduce six prediction market-style ETFs under the brands PredictionShares and a comparable offering from GraniteShares.

The first two funds from Bitwise will offer payouts based on the results of the 2028 presidential election, depending on whether a Democrat or Republican wins. Additional funds will focus on the 2026 Senate and House elections, rewarding investors based on the winning party. Each fund will allocate a minimum of 80% of its net assets to binary event contracts, which are derivatives that settle at $1 for a winning outcome and $0 otherwise.

These initiatives follow previous proposals, including a filing by Roundhill in February for similar ETF structures. James Seyffart, an ETF analyst, remarked on the trend of financializing prediction markets, suggesting this may not be the last of such filings.

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