Prediction Markets May Be Coming for ETFs

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Prediction Markets:Just when you thought the sector’s capacity for invention had been exhausted. Listen and subscribe to Trillions on Apple, Spotify, iHeart and the Bloomberg Terminal.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?