Prediction Market ETFs? Roundhill Files For 6 Political Funds For 2026, 2028 Elections
The rise of prediction markets has put the sports‑betting sector on , as consumers increasingly turn to platforms like Kalshi, Polymarket, and Robinhood to wager on sports outcomes — along with markets spanning entertainment and politics. Now, ETF issuer Roundhill Investments has filed for six politically focused prediction‑market ETFs that could push the sector even further.
Roundhill's Prediction Market ETFs
Known for its thematic ETFs covering the likes of the Magnificent Seven stocks, sports betting, meme stocks and more, Roundhill made headlines with its latest SEC filing for six new ETFs.
- Roundhill Democratic President ETF (BLUP)
- Roundhill Republican President ETF (REDP)
- Roundhill Democratic Senate ETF (BLUS)
- Roundhill Republican Senate ETF (REDS)
- Roundhill Democratic House ETF (BLUH)
- Roundhill Republican House ETF (REDH)
These ETFs would invest in political outcomes tied to the 2026 and 2028 elections, allowing investors to speculate on — and profit from — the results.
According to the filing, the Democratic President ETF aims to deliver capital appreciation if a Democrat wins the 2028 presidential election. If not, "the fund will lose substantially all of its value," the filing said. Similar language applies to the Republican version and the House and Senate funds tied to the 2026 elections.
The ETFs will invest in event contracts regulated under the Commodity Exchange Act and overseen by the CFTC. The filing does not specify which exchange the contracts will come from, suggesting they may be sourced from multiple venues.
While some funds could lose money depending on election outcomes, they will not terminate. Instead, they will determine the winner, then shift focus to the next election cycle. Funds that correctly predict the outcome will also undergo a reverse stock split.
The ETFs have not yet been approved by the SEC, and Benzinga will be watching to see whether these first‑of‑their‑kind products reach the market.
Prediction Market Growth Continues
Recent quarterly earnings from Robinhood Markets (NASDAQ:HOOD) highlighted strong prediction market contracts records being set with the segment being one of several growth items for the financial services company.
Quarterly results from DraftKings Inc (NASDAQ:DKNG) highlighted the future potential of prediction markets in states that don't have legalized online sports betting, while the company's guidance may have also signaled that prediction market giants like Kalshi and Polymarket are taking sports betting market share.
Roundhill CEO Dave Mazza recently told Benzinga that sportsbooks aren't being displaced. "Sportsbooks still win on product depth, user experience, media reach, and regulatory positioning," he said.
Mazza said that prediction markets offer simplicity for users and can provide different pricing mechanics.
“Regulation will determine how fast this converges, but it’s not a zero-sum game. Ultimately, we see innovative disruption as an indication that the sports betting and gambling markets have longevity.”
The Roundhill Sports Betting & iGaming ETF (NYSE:BETZ) was the first ETF for the sports betting sector in the U.S. The same company that launched the sports betting ETF could be the first to bring prediction market ETFs to investors, providing a full circle moment for the growth and disruption of the sector.
Image: Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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