More than 24 ETFs linked to prediction markets, which were set for launch in the US, have been postponed due to a request for additional information from the Securities and Exchange Commission (SEC), Reuters reported. Three asset managers, including Roundhill Investments, GraniteShares, and Bitwise, applied for the launch of related ETFs in February, and the 75-day automatic approval deadline was set to expire this week. These ETFs are structured to include derivatives linked to the outcomes of real-world events such as midterm elections, presidential elections, economic recessions, and tech industry restructuring. Insider trading and the potential for catastrophic losses are cited as investment risks. However, sources familiar with the matter believe that this launch delay is likely temporary.
