ERShares, adviser to the ERShares Private-Public Crossover ETF, announced that XOVR has invested $30 million in Kalshi as part of the fund’s latest rebalance. The investment adds exposure to Kalshi, a federally regulated prediction market company, and represents one of XOVR’s largest private-company investments.
Kalshi operates a Commodity Futures Trading Commission-regulated prediction market exchange where participants can trade event contracts tied to real-world outcomes. These contracts create market-based probabilities around areas such as the economy, policy, weather, sports, culture, and other sources of uncertainty.
ERShares said Kalshi has experienced rapid growth in trading activity, contract categories, and participation from individual and institutional market participants. The firm believes Kalshi is building an important new layer of financial market infrastructure.
The Kalshi investment was identified through ERShares’ proprietary VC Lens, which is designed to find category-defining companies before they are widely reflected in traditional public equity benchmarks. ERShares said the same early-identification discipline previously guided its investment strategy around NVIDIA, which it first invested in in 2005.
XOVR was relaunched in August 2024 as an ETF designed to provide access to private equity exposure through a private-public crossover structure. The fund combines select private-company exposure with publicly traded innovation leaders inside a Nasdaq-listed ETF.
The fund incorporates the proprietary ER30TR Index as its core public portfolio to guide allocation. ERShares said XOVR has also established several industry firsts, including placing private equity exposure inside an ETF, increasing private equity exposure beyond 15% with support from a liquidity arrangement, and creating a Shareholder Protection Plan intended to help prevent significant dilution before a major repricing event.
The Kalshi investment follows a strong period for XOVR tied to its SpaceX exposure. XOVR returned 27.45% in the second quarter of 2026 and 5.30% in June 2026.
ERShares said SpaceX contributed approximately $135 million in unrealized appreciation during the second quarter, including approximately $84 million in June. The firm estimated that SpaceX accounted for roughly 75% of XOVR’s June return.
ERShares also said it increased XOVR’s SpaceX position twice in the weeks before SpaceX’s IPO. The fund’s current SpaceX position is approximately $350 million.
The firm said it turned away more than $1 billion of potential inflows shortly before the SpaceX IPO to reduce dilution risk for existing shareholders. ERShares framed that decision as part of its effort to democratize private equity access while protecting long-term shareholders.
XOVR had approximately $2.1 billion in assets under management as of July 9, 2026. ERShares said the addition of Kalshi strengthens XOVR’s position as a differentiated ETF for investors seeking exposure to private-market innovation, regulated prediction markets, financial technology, market infrastructure, and private-public crossover investing.
KEY QUOTES:
“SpaceX demonstrated the strategy. Kalshi is where our VC Lens is pointing next. 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. Markets eventually recognize category leaders. Our job is to recognize them first. That’s what the VC Lens is designed to do. It guided our investment in SpaceX, and it’s guiding our investment in Kalshi through the same principles of valuation discipline, position sizing, and long-term shareholder alignment. That was our approach with SpaceX, and it is our approach with Kalshi: access, valuation discipline, position sizing, and long-term shareholder alignment. From SpaceX to Kalshi, the strategy is consistent: identify category leaders early through VC Lens, apply valuation discipline, and seek to preserve value for long-term shareholders. The companies changing the future often emerge before public benchmarks recognize them. XOVR was built for that gap.”
Joel Shulman, Ph.D., CFA, Founder and Chief Investment Officer of ERShares
“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. XOVR’s goal is access before consensus. By the time many innovation leaders enter traditional public benchmarks, much of the early value creation may already have occurred. XOVR was designed to help close that access gap through a transparent, Nasdaq-listed ETF.”
Eva Ados, Chief Investment Strategist and Chief Operating Officer of ERShares
