SEC Freezes Prediction Market ETFs as Monthly Trading Volume Hits $15B in May

According to SEC Chair Paul Atkins, the U.S. Securities and Exchange Commission paused approvals of prediction market exchange-traded funds (ETFs) filed by Bitwise, Roundhill Investments, and GraniteShares earlier this month, stating the agency needs more time to evaluate risks associated with these products. The three firms submitted their applications in February.

Prediction markets have become one of crypto's fastest-growing sectors, with monthly trading volume regularly exceeding $15 billion as users speculate on elections, sporting events, and other real-world outcomes. The proposed ETFs would allow mainstream investors to gain exposure to prediction market contracts through traditional brokerage accounts.