Bitwise wants to introduce new prediction market ETFs for ABD elections

A significant development is happening in the field of crypto asset management. San Francisco-based Bitwise Asset Management is preparing to implement plans to make election prediction markets accessible through exchange-traded funds (ETFs). The company’s application is considered the first major step in demonstrating how institutional investors might evaluate prediction markets for U.S. elections.

Predicting Election Outcomes Now Possible Through ETFs

Bitwise is entering the market with products under the “Prediction Shares” brand. For the 2028 U.S. presidential election, the company has applied to the Securities and Exchange Commission (SEC) to list one ETF predicting the Democratic candidate will win and another predicting the Republican candidate will win. Each product is designed to invest in prediction market bets related to the respective political outcome.

In the context of U.S. elections, Bitwise’s strategy is fundamentally aimed at providing investors with easier access than traditional prediction platforms. Just as Bitcoin ETFs allow investment in BTC without directly purchasing cryptocurrencies, these new products will enable positions to be taken on election outcomes without participating in platforms like Polymarket.

Prediction Market Products for the 2026 and 2028 U.S. Elections

Bitwise’s ambitions are not limited to 2028. The company has also prepared four additional products for the 2026 midterm elections. These will track prediction market bets on the seats that Democratic and Republican parties will win in the House of Representatives and the Senate. This way, Bitwise aims to offer opportunities to investors at every stage of the U.S. election cycle.

Prediction markets played a significant role in the last election cycle and have now become a dynamic sector with an estimated monthly trading volume of around $10 billion. This development indicates that new methods for predicting voter behavior are being integrated alongside traditional financial instruments.

New Opportunities for Institutional Investors: ETFs Make Prediction Markets Accessible

Transforming prediction markets into investment vehicles brings the advantages of Bitcoin ETFs to the prediction economy. While prediction markets have so far been primarily used by retail investors, the ETF format opens the door to institutional capital.

These election-focused ETFs have the potential to reach a broad range of institutional investors, from corporate boards to fund managers. Bitwise’s intention to use the 2026 midterms as a testing ground suggests that prediction market ETFs could serve as prototypes for broader applications.

The proliferation of such financial products across the crypto industry is seen as a result of traditional financial institutions increasingly showing interest in blockchain-based prediction tools. While Bitcoin’s price is currently around $67,020, the role of prediction market products in the market’s development is closely watched by investors and many other stakeholders.