XOVR ETF Adds $30M Kalshi Stake, Mirroring Pre-IPO SpaceX Bet

A Second ETF Takes a Position in Kalshi

ERShares' Private-Public Crossover ETF (Nasdaq: XOVR) has invested $30 million in prediction market operator Kalshi during its latest portfolio rebalance, making the privately held, CFTC-regulated company the fund's second-largest private holding. The allocation gives XOVR a 1.42% weighting in Kalshi, according to the asset manager.

Kalshi now appears in two exchange-traded funds. The Tema Durable Quality ETF (Cboe: TOLL) previously disclosed a Kalshi stake acquired through a special purpose vehicle (SPV), where it represents 7.49% of that fund's roster, making it the largest holding.

Strategic Rationale: Following the SpaceX Playbook

ERShares identified Kalshi through its proprietary VC Lens investment process, which targets category-defining private companies before they appear in public equity benchmarks. The methodology mirrors the firm's successful approach to SpaceX, which generated approximately $135 million in unrealized appreciation for XOVR during the second quarter of 2026, contributing to the ETF's 27.45% return over the period.

"SpaceX demonstrated the strategy. Kalshi is where our VC Lens is pointing next," said Joel Shulman, founder and chief investment officer of ERShares. He added that the ETF was designed to provide private equity exposure alongside public innovation leaders in a transparent, Nasdaq-listed structure.

Eva Ados, chief investment strategist and chief operating officer, explained the broader thesis: "Kalshi seeks to turn uncertainty into a price. 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."

Prediction Market Demand and Broader Exposure

Kalshi has seen explosive growth. Institutional trading increased 800% in the six months through May, while annualized trading volume more than tripled from $52 billion to $178 billion over the same period, the company reported. The operator is reportedly pursuing another financing round at a $40 billion valuation and has acknowledged considering an initial public offering, though not this year.

Beyond its direct Kalshi holding, XOVR gains indirect prediction market exposure through several public holdings. The fund allocates approximately 5.7% of its portfolio to Robinhood Markets and DraftKings (both of which have expanded into prediction-related products), while Meta Platforms – reportedly developing its own prediction market – ranks as the ETF's fourth-largest holding at 5.23%.

Structural Innovation and Liquidity Management

ERShares relaunched XOVR in August 2024 as what it describes as the first ETF to combine private and public equity holdings in a single listed vehicle. The fund previously implemented a Shareholder Protection Plan to limit dilution ahead of major repricing events – a mechanism Shulman emphasized as critical to private-market investing. Before SpaceX's IPO, the firm turned away more than $1 billion in potential inflows to protect existing shareholders' exposure.

As of mid-July 2026, XOVR manages approximately $2.1 billion in assets. Its top holdings include SpaceX (held through an SPV), Nvidia, Astera Labs, Alphabet, Meta, and Robinhood.