ERShares has announced a significant investment of $30 million in Kalshi, a prediction market operator, as part of its recent portfolio rebalancing for the Private-Public Crossover ETF (NASDAQ: XOVR).
This investment positions Kalshi among the largest private holdings within XOVR, providing ETF investors with access to a federally regulated prediction market.
Following this transaction, Kalshi now constitutes 1.42% of the XOVR portfolio, according to the asset management firm.
XOVR is now the second exchange-traded fund to publicly acknowledge its investment in Kalshi, following the Tema Durable Quality ETF, which previously acquired shares through a special purpose vehicle.
Kalshi operates a prediction market exchange regulated by the Commodity Futures Trading Commission, offering contracts on various events related to the economy, public policy, weather, sports, and culture.
The selection of Kalshi was made through ERShares' unique VC Lens investment strategy, designed to identify pioneering private companies before they gain significant presence in public equity markets.
Joel Shulman, the Founder and Chief Investment Officer of ERShares, remarked, "SpaceX showcased our strategy, and now Kalshi is the next target of our VC Lens." He emphasized that XOVR was established to provide a unique blend of private equity and public innovation within a transparent, Nasdaq-listed framework. Shulman believes that Kalshi is developing a crucial new layer of financial market infrastructure.
Eva Ados, Chief Investment Strategist and COO at ERShares, highlighted the importance of prediction markets, stating they offer real-time insights into future outcomes within a regulated environment. She noted, "Kalshi aims to convert uncertainty into pricing, which underscores the significance of prediction markets. They provide timely signals to investors, institutions, and individuals regarding future events in a regulated market setting."
As of July 9, 2026, XOVR manages around $2.1 billion in assets and was relaunched in August 2024 as a private-public crossover fund. The fund previously invested in SpaceX, and the aerospace company's IPO has notably contributed to its recent success.
Kalshi has seen substantial growth in trading volume, contract offerings, and user participation. The company has recently completed a major funding round to facilitate its expansion plans.
Media reports suggest that Kalshi is contemplating an initial public offering, although this is not expected to occur this year, as it seeks additional financing at a valuation of approximately $40 billion.