Prediction markets have experienced a precipitous rise in popularity this year. Now, thanks to a new ETF launched in September, investors can gain exposure to two of the biggest platforms while they are still privately held—and potentially ahead of future IPOs.
While the services offered by prediction market platforms blur the line between traditional financial markets and sports and events wagering, event contracts are financial derivatives. The Commodity Futures Trading Commission (CFTC) says event contracts traded on regulated prediction markets are typically structured as swaps and fall under its oversight.
