SEC Review Pending: ETFs to Let Investors Trade on 2028 Elections

- Roundhill Investments submits SEC filing for innovative ETFs tied to election outcomes. - Investors face binary outcomes: profit from correct predictions or lose nearly all. On February 15, 2026, Cryptopolitan reported that Roundhill Investments filed a groundbreaking proposal with the U.S. Securities and Exchange Commission (SEC). The company aims to launch six exchange-traded funds (ETFs) that would allow investors to bet on the results of the 2028 U.S. elections. If approved, these funds would offer a new way for investors to speculate on politics through standard brokerage accounts, merging the worlds of finance and politics. The proposed ETFs have a binary structure, rewarding accurate predictions with profits while imposing near-total losses for incorrect forecasts. Roundhill’s plan includes separate ETFs for Democratic and Republican victories across the presidential, Senate, and House of Representatives races. The company introduced innovative tickers, such as “BLUP” for a Democratic presidential win and “REDS” for a Republican Senate victory. The ETFs’ structure uses event contracts, which are financial instruments directly tied to specific event results. After officials certify the 2028 election outcomes, shares linked to the winning party’s ETFs will approach $1 each, while the losing ETFs will become effectively worthless. Notably, the ETFs will automatically transition to the 2032 election cycle, maintaining their relevance beyond 2028. This audacious proposal follows pivotal regulatory changes in February 2026, when the Commodity Futures Trading Commission (CFTC) rescinded its push to prohibit political betting exchanges, thereby allowing financial institutions to explore products that blend speculation and political events. Bloomberg ETF analyst Eric Balchunas noted that the proposal is potentially groundbreaking, emphasizing its potential to bring prediction markets into mainstream investing. These ETFs could give retail investors easier access to election betting and help normalize the practice. However, critics warn of potential risks, such as impulsive investor behavior and the troubling prospect of political finance influencing public opinion. The SEC’s decision remains pending, and an approval would likely establish a precedent for products that link financial markets and political outcomes. For now, Roundhill’s proposal stands as a bold experiment with the potential to reshape the relationship between politics and investing.