An interesting new product has appeared on the Cboe BZX exchange: the DICE ETF, which invests in prediction market companies. According to a TokenPost report, the product is structured to invest directly in the hottest prediction platforms, Kalshi and Polymarket, via a special purpose vehicle (SPV). It has an expense ratio of 0.75%, with both Kalshi and Polymarket accounting for approximately 7.3% of its top holdings each.

Personally, I see this as a significant trend. Until now, it has been extremely difficult for institutional investors to participate in the growth of Web3-based prediction markets like Polymarket. By wrapping it in the structure of a regulated ETF, a legitimate gateway has been opened for institutional capital to enter the space.

Of course, one should keep in mind that this is quite different from participating directly in tokens or prediction markets, as it is primarily an indirect investment. Still, I think this is a powerful signal that the event-betting sector, once considered a niche or 'underground' market, is gradually establishing itself as a pillar of institutional finance. It will be fun to watch how far the prediction market theme expands within the institutional space going forward.

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