US Prediction-Market ETF Launch Delayed as SEC Seeks Further Review, Balchunas Says
Summary
- The U.S. Securities and Exchange Commission (SEC) delayed the launch of a prediction-market-based ETF for additional review.
- Eric Balchunas said the delay to the prediction-market ETF launch does not appear to stem from a fatal problem, but rather from another review of the disclosure.
- The market is watching whether formal approval of a prediction-market ETF could expand links between traditional financial markets and the blockchain-based prediction-market industry.
Forecast Trend Report by Period
The U.S. Securities and Exchange Commission has delayed the launch of a prediction-market exchange-traded fund as it conducts further review.
Bloomberg ETF analyst Eric Balchunas wrote on X on May 11 that the prediction-market ETF would not launch as originally scheduled that day because the SEC wants more time to review the product.
“It doesn’t appear to be a fatal issue,” he wrote. “It looks more like the agency wants to take another pass through the disclosure.”
Balchunas added that the products are highly innovative and could set a new precedent once they launch, helping explain why regulators want more time.
Prediction-market ETFs are structured to use data from markets that trade on the probability of future events, including political events, economic indicators and sports results. Market participants are watching whether formal approval of the products could expand links between traditional financial markets and the blockchain-based prediction-market industry.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
