Kalshi Lands in Another ETF as XOVR Adds $30 Million Stake

Kalshi is still a closely held company, but the prediction market giant has found its way into another exchange traded fund (ETF).

On Monday, ERShares, the issuer of the ERShares Private-Public Crossover ETF (NASDAQ: XOVR), announced that it invested $30 million in Kalshi as part of the ETF’s latest rebalance. The $459 million ETF provides access to both privately held and publicly traded companies.

“Kalshi seeks to turn uncertainty into price,” said Eva Ados, Chief Investment Strategist and Chief Operating Officer of ERShares, in a statement. “That is why we believe prediction markets matter. They give investors, institutions, businesses, and individuals a real-time signal on future outcomes inside a regulated market structure.”

With the $30 million investment, Kalshi accounts for 1.42% of the XOVR roster, according to issuer data. Just five of the ETF’s holdings command smaller weights.

XOVR Joins Another ETF in Holding Kalshi

XOVR isn’t the first ETF to reveal a stake in Kalshi, the largest prediction market operator. That honor belongs to the Tema Durable Quality ETF (CBOE: TOLL). In May, Tema disclosed it added Kalshi to that fund’s roster using a special purpose vehicle (SPV). Today, Kalshi is that ETF’s largest holding, garnering a weight of 7.49%.

As more investors clamor for exposure to pre-initial public offering (IPO) companies, including Kalshi, some ETF issuers are responding by using SPVs to provide that access. ERShares did just that with SpaceX (NASDAQ: SPCX) prior to that June IPO. In fact, that IPO — history’s largest — is among the reasons XOVR rose to prominence. XOVR, which was reconfigured in 2024, was the first ETF to provide public/private access under one roof.

“SpaceX demonstrated the strategy. Kalshi is where our venture capital lens is pointing next,” said Joel Shulman, Ph.D., CFA, Founder and Chief Investment Officer of ERShares. “XOVR was created to do what traditional ETFs historically could not: provide access to private equity exposure alongside public innovation leaders in one transparent, Nasdaq-listed structure. We believe Kalshi is building one of the most important new layers of financial market infrastructure.”

Speaking of IPOs, Kalshi, which is reportedly pursuing another financing round at a $40 billion valuation, acknowledges it’s considering an IPO, but that will not occur this year.

XOVR Has Solid Prediction Market Exposure

Currently, there are no dedicated prediction market ETFs on the market, though Tema could soon alter that scenario. In the meantime, ERShares’ XOVR is arguably a suitable alternative.

The fund devotes about 5.7% of its portfolio to Robinhood Markets (NASDAQ: HOOD) and DraftKings (NASDAQ: DKNG), both of which are on the rise in the prediction market industry. Facebook parent Meta Platforms (NASDAQ: META), which is reportedly working on its own prediction market, is the ETF’s fourth-largest holdings at a weight of 5.23%.