Various investment firms have filed requests for exchange-traded funds (ETFs) linked to U.S. election results, marking a growing push to introduce products based on political event contracts even as regulators enforce actions against prediction markets.

Bitwise Investments, Roundhill Investments, and GraniteShares have all submitted proposals to the Securities and Exchange Commission (SEC) for ETFs that will track outcomes of the 2026 midterm elections and the 2028 presidential race. So far, the SEC has yet to approve any of these political prediction market ETFs.

Bitwise is launching a new brand called PredictionShares aimed at tracking Democratic and Republican results for the 2028 presidential elections, in addition to contracts related to party control in the House and Senate following the 2026 midterms. The application specifies that the presidential ETFs will be terminated once contracts have settled.

The application asserts, “Upon the conclusion of the 2028 Presidential Election and the settlement of the Democratic President Contracts, the Fund will sell its holdings, clear any outstanding obligations, and distribute the remaining assets to Fund Shareholders.”

For the losing party, the ETFs will essentially become worthless after Election Day. For instance, if Democrats don’t clinch the victory, “the Fund will significantly lose all its value,” resulting in the ETF’s termination.

GraniteShares is proposing a different model, envisioning products that remain active beyond Election Day. Its proposal indicates that the funds for the 2026 House and Senate elections will be adjusted for the 2028 cycle, while its presidential ETFs will transition to derivatives pertaining to the 2032 elections.

The issuers have not revealed which designated contract markets will facilitate the political event contracts associated with their proposed ETFs. Kalshi and Polymarket continue to be key players in this space.

The submissions enter a marketplace outlined by analysts as primed for rigorous trading. Ganesh Mahidhar, an Investment Professional at Further Ventures, remarked to Decrypt that “The high interest in these event markets makes providing liquidity an attractive endeavor for hedge funds and quantitative trading firms.”

Nonetheless, ongoing regulatory disputes surrounding these types of products are already making headlines. Nevada, Massachusetts, and other states have initiated actions against event contracts presented by Kalshi and Polymarket, claiming they represent unlicensed gambling products. Concurrently, the Commodity Futures Trading Commission (CFTC) maintains that these prediction markets fall under federal jurisdiction.

Chairman Michael Selig announced that the agency has submitted an amicus brief to a federal appeals court to affirm this stance. In a Wall Street Journal op-ed, he stated that the CFTC “will no longer passively watch while overly aggressive state governments disrupt the agency’s exclusive governance over these markets,” adding that event contracts are classified as swaps under federal oversight.