The US Securities and Exchange Commission (SEC) has temporarily blocked the launch of a series of exchange-traded funds (ETFs). These products were designed to allow investors to place bets on political and economic events. According to Reuters, the delay affects a total of 24 ETFs from providers including Bitwise, Roundhill, and GraniteShares. The regulator intends to take a closer look at how these financial products work and what risks they carry for investors.
The applicant companies submitted their filings back in February. Under the SEC's new fast-track rules, they were due to receive automatic approval this week. The planned funds are built around specific event outcomes: investors would be able to bet on the result of the 2028 US presidential election, a wave of layoffs in the tech sector, or the likelihood of a recession.
A Regulatory Power Struggle — but "The Delay Is Only Temporary"
Unlike conventional ETFs that track Bitcoin's price or the S&P 500, these new products function like binary options — the outcome is simply yes or no, similar to platforms like Polymarket or Kalshi. In the filings themselves, issuers already warn that in the worst case, investors could lose their entire stake if the event does not unfold as predicted.
Behind the scenes, a fierce turf war is underway over who has authority to regulate these markets. The Commodity Futures Trading Commission (CFTC) has already filed lawsuits against several US states, arguing that "event contracts fall under its exclusive jurisdiction." State representatives are pushing back, viewing such instruments as nothing more than illegal gambling.
Despite the current blockade, optimistic voices are emerging. Bloomberg analyst Eric Balchunas believes the delay is only temporary.
