SEC pumps the brakes on prediction market ETFs set to debut this week: Reuters
The Block
The SEC has delayed the launch of 24 prediction market ETFs, citing concerns over product structure and investor risk.Summary
The U.S. Securities and Exchange Commission has paused the debut of 24 prediction market exchange-traded funds from issuers such as Bitwise, Roundhill, and GraniteShares. Unlike traditional ETFs tied to assets like bitcoin, these products function as binary wagers on specific political and economic outcomes, carrying significant risk of total loss. This regulatory delay occurs amidst ongoing jurisdictional disputes between federal agencies like the CFTC and various states regarding the oversight of event contracts, as well as broader concerns about insider trading.
(Source：The Block)