A new category of exchange-traded funds will enter the USmarket next week, giving investors direct exposure to election outcomes throughregulated products.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!).Roundhill Investments plans to launch six ETFs tied to whichparty controls the White House and Congress, marking the first time predictionmarket strategies appear in ETF form.Structure and Market ExposureAccording to SEC filing, Roundhill’s lineup includes fundslinked to Democrats and Republicans across three branches of power. Theproducts cover the presidency, Senate, and House, with ticker symbols BLUP,REDP, BLUS, REDS, BLUH, and REDH. The congressional funds track outcomes of the November 2026midterm elections, while the presidential funds reference the 2028 race.The ETFs gain exposure through swap agreements tied tobinary event contracts traded on markets regulated by the Commodity FuturesTrading Commission. These contracts settle at The prospectus states that if the selected party fails towin, “the fund will lose substantially all of its value.” The structure createsa binary payoff profile with limited downside protection.Read more: Polymarket Grabs Nearly 55% of Prediction Markets as Iran Bets Test CFTC CrackdownRoundhill does not plan to liquidate the funds after anoutcome is determined. Instead, once markets assign near certainty to a resultfor several consecutive days, the funds will roll exposure into the nextelection cycle. Midterm funds will shift to 2028 races, while presidentialfunds will move to 2032.Competition and Regulatory BackdropOther asset managers have filed similar products. Bitwiseand GraniteShares submitted proposals for six comparable funds earlier thisyear. Bitwise plans to terminate its funds shortly after outcomes are decided,while GraniteShares uses a rolling structure similar to Roundhill.Prediction contracts already trade on platforms such asPolymarket and Kalshi, but ETFs could expand access by allowing investors tohold these exposures in standard brokerage accounts and some retirement plans.Regulatory uncertainty remains. The Commodity FuturesTrading Commission withdrew a proposal in February that would have bannedpolitical event contracts. However, state regulators in jurisdictions includingMassachusetts, New York, and Nevada continue to challenge these contracts incourt.Roundhill has also filed for non-political prediction ETFs,including products linked to whether the US economy enters a recession.This article was written by Jared Kirui at www.financemagnates.com.