Media Coverage
Source: Pensions & Investments
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Taina Rosa, Olivia Meyer
07.14.26
The SEC is heavily scrutinizing the mechanics, liquidity, and disclosures of novel ETFs such as those tied to prediction markets, which seek to track binary event contracts tied to real-world outcomes like U.S. elections. While regulators are reviewing the proposals, the proposed products remain paused.
Pillsbury partner David Oliwenstein, a former enforcement attorney at the SEC, told Pensions & Investments that when it comes to prediction markets in particular, “there is a recognition that there is significant potential for substantial investor losses and for losses to pile up very quickly.” He said this is a particular concern for retail investors who are disproportionately attracted to the prediction markets.
“I think there’s a sense that this particular type of ETF is going to become very popular if it’s allowed to proliferate,” Oliwenstein said. “What the ETF will allow (retail investors) to do is make access easier for them. They don’t need to create a new account on Kalshi, or some other prediction market trading platform. They’ll just be able to buy and sell these ETFs through their normal brokerage account, so these products are going to become more accessible, and I think the commission recognizes that and is acting accordingly.”
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