Tema ETFs launched the Tema Trading and Prediction Markets ETF on Sept. 9, giving public-market investors indirect exposure to private prediction-market companies Kalshi and Polymarket. The fund trades under the ticker DICE and does not hold prediction-market contracts themselves.

Instead, DICE uses special purpose vehicles, or SPVs, to pool investor money and purchase pre-IPO shares in private companies. Kalshi and Polymarket are the fund’s two largest holdings, although their combined allocation is about 15% of the portfolio. The remainder includes publicly traded companies such as Robinhood, Interactive Brokers, Intercontinental Exchange, and Coinbase. The fund has a gross expense ratio of 0.75%. Because the private-company stakes make up a minority of the portfolio, DICE combines that exposure with holdings tied to established publicly traded financial and cryptocurrency businesses.

Financial analyst Eric Balchunas described the structure in an X post on Sept. 9, writing:

Tema launching a prediction markets ETF (theme ETF not actual event contracts, SEC still pondering those) but it has 15% in privates Kalshi and Polymarket. This makes sense to me re using the 15% illiquidity bucket- theme ETFs or sectors might as well get dose of private co part… pic.twitter.com/ybFfbyhppL — Eric Balchunas (@EricBalchunas) September 9, 2026

Kalshi and Polymarket are both private companies, meaning most retail investors have not had a direct way to purchase their shares. DICE provides an indirect route through its private-company holdings rather than through ownership of the platforms’ event contracts.

Prediction-market growth draws attention

Prediction-market activity has expanded rapidly. Monthly trading volume topped $10 billion on each platform this summer, driven in part by global sporting events such as the World Cup.

Tema President Steve Munroe said prediction-market trading volume could grow nearly 20 times to reach $1 trillion by 2030. The projection has attracted attention from fund companies seeking to create investable products linked to the sector.

Kalshi and Polymarket were each valued at more than $20 billion in recent financing rounds. Reports indicate that Kalshi may be seeking additional funding at a valuation of $40 billion. Tema said its investments in the two companies are priced at approximately a 10% to 13% discount to their latest valuations.

That pricing could give DICE holders exposure to any increase in the value of the private stakes if either company eventually goes public at a valuation above its current level. However, neither Kalshi nor Polymarket has announced plans for an initial public offering. Kalshi declined to comment on a potential listing, while Polymarket did not respond to requests for comment.

Legal challenges continue

The companies also face legal challenges in several U.S. states over the classification of their sports-related contracts. The central question is whether the contracts are financial instruments or gambling products.

Kalshi and Polymarket argue that they should be regulated federally by the Commodity Futures Trading Commission and maintain that their contracts are financial tools rather than bets. If the U.S. Supreme Court were to rule against them, however, the platforms could be treated as sportsbooks. That would subject them to state-level regulations and could restrict where they operate.

Sports betting is currently illegal in major states including California, Georgia, and Texas.

DICE is not the only exchange-traded fund with pre-IPO exposure to one of the companies. The ERShares Private-Public Crossover ETF holds a Kalshi position valued at $30 million, while the KraneShares Public-Private AI and Technology ETF holds a small stake in Polymarket.

The DICE ETF is therefore among the more direct ways for public-market investors to obtain exposure to the prediction-markets industry, although the companies’ legal status, private-market valuations, and potential listing timelines remain unresolved.

Source: CoinCentral