New ETFs may let investors bet on U.S. election outcomes in regular brokerage accounts.

Several firms have filed with the SEC to launch exchange-traded funds (ETFs) that track prediction markets on U.S. election results, such as who will win the presidency or control Congress. These ETFs would allow investors to gain exposure to election outcomes within standard brokerage accounts, similar to how bitcoin ETFs made crypto investing more accessible. The funds would reflect the changing probabilities of election results, but carry high risk as losing bets could wipe out most of the investment. The move faces legal challenges, especially around sports betting regulations, but could expand market access to political event contracts if approved.