Tema ETFs, a leader in actively managed exchange-traded funds, launched the Tema Trading & Prediction Markets ETF (DICE) on September 9, 2026. This ETF, trading on the Cboe exchange, is designed to give investors exposure to the burgeoning prediction markets sector, alongside other financial innovators like trading platforms and data providers.
A key feature of DICE is its allocation to private companies Kalshi and Polymarket, which collectively make up approximately 15% of the fund's holdings. This exposure is achieved through special purpose vehicles (SPVs), with Kalshi SPV at 7.34% and Polymarket SPV at 7.33% of the fund. These private firms, still closely held, represent a significant draw for retail investors seeking early access to companies that are not yet publicly traded. Kalshi, for example, reportedly crossed $2 billion in annualized revenue in July 2026 and has been in informal talks with investment banks for a potential listing, with some reports valuing it between $22 billion and $40 billion.
Beyond Kalshi and Polymarket, the DICE ETF's portfolio includes established public companies such as Robinhood Markets Inc. (4.73%), Coinbase Global Inc. (4.69%), Interactive Brokers Group Inc. (4.70%), Galaxy Digital Inc. (4.89%), and Intercontinental Exchange Inc. (4.63%). The fund also holds positions in Circle Internet Group Inc. (4.55%), IG Group Holdings PLC (3.37%), and Securitize Corp. (2.92%). The gross expense ratio for DICE is 0.75%.
Prediction market trading volume is projected to grow significantly, with Tema ETFs President Steve Munroe forecasting a nearly twentyfold increase to $1 trillion by 2030. Both Kalshi and Polymarket have seen explosive growth, with combined monthly trading volumes reaching approximately $24 billion by April 2026, and Kalshi hitting around $31 billion notional in June 2026 due to the World Cup. Regulatory uncertainty persists, however, as some state governments contest the classification of these platforms' sports-related contracts as financial instruments versus gambling activities.
