Published on: February 14, 2026, 02:52h.
Updated on: February 14, 2026, 02:52h.
- Investment firm proposes six ETFs targeting domestic political prediction markets
- Approval for the ETFs still pending
- Roundhill is recognized for its notable sports betting ETF
Investors focused on political prediction markets may gain new opportunities in the lead-up to the 2026 midterm elections if a series of exchange-traded funds (ETFs) submitted by Roundhill Investments receives approval.
In a filing made on February 13 with the Securities and Exchange Commission (SEC), Roundhill outlined plans for six ETFs designed to include yes/no contracts linked to US electoral outcomes. The proposed ETFs are as follows, along with their suggested tickers: Roundhill Democratic President ETF (BLUP), Roundhill Republican President ETF (REDP), Roundhill Democratic Senate ETF (BLUS), Roundhill Republican Senate ETF (REDS), Roundhill Democratic House ETF (BLUH), and Roundhill Republican House ETF (REDH).
The approval of these ETFs could be well-timed for Roundhill, particularly as the industry has seen increased activity surrounding political derivatives in the run-up to major elections. With 2026 marking an election year, there is anticipation of heightened trading volumes related to political events.
The asset manager’s SEC filing did not specify the prediction markets that will provide the contracts but indicated collaboration with Designated Contract Markets (DCMs), which are essential for companies looking to offer exchange-listed derivatives, including yes/no event contracts, within the US market.
Functioning of Political Prediction Market ETFs
Analyzing the framework for the BLUP and REDP ETFs, it’s important to note that while one of these funds may lose its value post the 2028 presidential elections, they are not expected to dissolve immediately after Election Day.
“Following the conclusion of the 2028 Presidential Election, the Fund will account for any gains or losses associated with its Democratic President Contracts related to the 2028 Presidential Election and will invest in event contracts that will settle at $1.00 if the winner of the U.S. Presidential Election on November 2, 2032, is a member of the Democratic Party,” as stated in the regulatory filing. “The Fund will declare that the 2028 Presidential Election results have been finalized.”
Concerning the Senate ETFs, BLUS and REDS will include event contracts reflecting the likelihood of each party maintaining control of the Senate after the 2026 midterms. For instance, if Republicans keep their majority, BLUS “will lose a significant portion of its value,” according to the Roundhill documentation. The same will apply for REDS if Democrats gain control of the Senate.
The House ETFs, BLUH and REDH, will operate similarly, and like the presidential ETFs, they will be revamped into 2028 election-focused products post the 2026 midterms.
Roundhill: A Familiar Name Among Gamblers and Investors
Many investors in the gaming sector will recognize Roundhill as the issuer of the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ), which was the first ETF dedicated to online casinos and sportsbooks.
This fund, reaching its six-year milestone in June, tracks the Morningstar Sports Betting & iGaming Select Index and features shares of prominent gaming entities, including Flutter Entertainment, owner of FanDuel (NYSE: FLUT) and DraftKings (NASDAQ: DKNG).