A US ETF issuer has filed an application with the Securities and Exchange Commission to launch six new event contract exchange-traded funds (ETFs) tied to the outcome of the 2028 US presidential election.
Analyst Sees Market Potential
Eric Balchunas, a renowned ETF analyst at Bloomberg, noted on social media that if approved, these ETF products could represent a groundbreaking development. He highlighted that this would open significant space for various new product types.
- ETF products will operate through event contract derivatives
- Investors will gain access through lower barriers to entry
- Offerings will cover multiple dimensions of presidential and congressional elections
Product Structure Analysis
According to the filing documents, these ETFs will achieve their investment objectives by investing in unique derivative instruments known as 'event contracts.' The planned six ETFs will cover different political party directions across presidential elections and congressional chamber elections.