Tema, one of a growing number of ETF providers offering thematic funds, has filed with the U.S. securities regulator to launch a new exchange-traded vehicle giving exposure to prediction market platforms and the trading infrastructure that supports them.
The U.S. Securities and Exchange Commission is already considering whether to approve about two dozen ETFs from other firms seeking to repackage prediction market questions into a product investors can trade as easily as a stock.
Tema said in its filing, made late Wednesday, that it plans to invest in publicly traded companies worldwide that are either prediction market platforms or trading companies, such as exchanges, brokerage firms, market makers and financial data providers.
Trump Media and Technology Group has also launched a cryptocurrency-based prediction market on its social media outlet Truth Social.
Prediction markets allow users to trade binary contracts tied to political, economic, sports and entertainment events, with outcomes hinging on answers to questions ranging from which party will control the U.S. Senate after midterm elections to the location of Taylor Swift's summer wedding.
However, prediction markets are attracting growing regulatory and congressional scrutiny over concerns about conflicts of interest and insider trading.
