ERShares’ Private-Public Crossover ETF (NASDAQ: XOVR) has allocated $30 million towards the prediction market platform Kalshi, integrating the private entity into its investment portfolio following the latest fund rebalancing.
This investment positions Kalshi as one of XOVR’s most significant private holdings, providing ETF investors with exposure to a federally regulated prediction market company.
Post-investment, Kalshi represents 1.42% of XOVR’s total portfolio, as per the asset management firm’s disclosure.
This initiative marks XOVR as the second ETF to reveal its investment in Kalshi, following the Tema Durable Quality ETF, which previously integrated the firm through a special purpose vehicle.
Kalshi operates a prediction market exchange regulated by the Commodity Futures Trading Commission, offering contracts that correlate with actual event outcomes across multiple sectors including the economy, public policy, weather, sports, and culture.
Kalshi was identified using ERShares’ exclusive VC Lens investment strategy, which aims to pinpoint groundbreaking private companies ahead of their public equity market representation.
“SpaceX validated this strategy. Now, Kalshi is the next focus of our VC Lens,” stated Joel Shulman, Founder and Chief Investment Officer of ERShares.
“XOVR was designed to achieve what traditional ETFs have historically struggled with: offering a pathway to private equity investments alongside leading public innovators in a single, transparent, Nasdaq-listed format. We believe Kalshi is establishing a crucial layer of financial market infrastructure,” he elaborated.
Eva Ados, ERShares’ Chief Investment Strategist and Chief Operating Officer, highlighted that prediction markets yield immediate indicators regarding future outcomes within a regulated environment.
“Kalshi aims to assign a price to uncertainty. This is why we view prediction markets as vital. They provide real-time insights into future possibilities for investors, institutions, businesses, and individuals within a regulated market framework,” Ados stated.
XOVR, reintroduced in August 2024 as a private-public crossover fund, currently manages around $2.1 billion in assets as of July 9, 2026. Prior investments included SpaceX, whose IPO significantly boosted the fund’s performance.
Kalshi has witnessed a rapid uptick in trading volume, contract diversity, and user participation. The company recently secured a substantial financing round to fuel its growth.
Reports suggest that Kalshi might eye an initial public offering in the future, though not within this year, while aiming for an additional funding round at a valuation around $40 billion.