Trillions
Prediction Markets May Be Coming for ETFs
Just when you thought the sector’s capacity for invention had been exhausted.
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Just when it feels like exchange-traded funds have done it all, along come some filings that push the frontier. A trio of issuers wants to launch funds tied to prediction markets—letting investors wager from their brokerage accounts on outcomes like which political party will control the White House or Congress. But how would these ETFs actually work? What else might get packaged this way? And will regulators ever sign off?