Published on: May 14, 2026, 07:59h.
Updated on: May 14, 2026, 07:59h.
- Tema’s application marks a shift from typical prediction market ETFs
- The fund aims to spotlight companies with stakes in prediction markets
- This ETF will be actively overseen
Tema ETFs, a new entrant in the exchange-traded fund (ETF) arena, has initiated a filing for the Tema Trading & Prediction Markets ETF.
The asset management firm disclosed the ETF details in a late Wednesday submission to the Securities and Exchange Commission (SEC). In contrast to other proposed prediction market ETFs, this fund will not include event contracts. If launched, it will consist of shares from companies that participate in the prediction markets sector and those that facilitate event contract trading.
According to the Tema regulatory document, a ‘Trading and Prediction Markets Company’ is defined as one that generates at least 50% of its annual revenue from providing infrastructure, software, data, and services that enable individuals and institutions to trade securities, commodities (including Event Contracts), and other financial instruments within traditional prediction and similar markets.
For companies without revenue or those operating for less than a year, fund managers will have the discretion to decide if such stocks can be included.
The Potential Popularity of the Tema ETF
If approved by the SEC, the Tema Trading & Prediction Markets ETF may attract interest, especially since retail investors are keen on gaining exposure to equities associated with prediction markets. However, prominent players like Kalshi and Polymarket currently remain privately owned.
Nonetheless, the actively managed Tema ETF could feature a variety of well-known names. Although the SEC submission does not specify potential stock inclusions, companies like Coinbase Global (NASDAQ: COIN) and Robinhood Markets (NASDAQ: HOOD)—both emerging entities in the prediction markets scene—are likely candidates.
Additionally, CME Group (NASDAQ: CME) and Intercontinental Exchange (NYSE: ICE) may also be part of the fund. CME has partnered with FanDuel Predicts, whereas ICE is the leading investor in Polymarket.
Other publicly traded firms, such as DraftKings (NASDAQ: DKNG), Flutter Entertainment (NYSE: FLUT), and Interactive Brokers (NASDAQ: IBKR), could also qualify for inclusion in the Tema ETF, pending its market debut.
Overview of the Tema Prediction Market ETF
The filing stipulates that the ETF will target companies from the U.S., China, Europe, Japan, and South Korea.
“The Fund will consider investments in micro-, small-, medium-, and large-cap firms. Generally, the Fund targets companies with a market capitalization of no less than $100 million, with no upper limit for portfolio company capitalizations. Additionally, the Fund aims for companies that average at least $500,000 in daily trade volume over three months,” as stated in the regulatory document.
However, the SEC filing did not provide a ticker symbol or expense ratio, which are typically indicative of an upcoming ETF launch.