Gamblers in the crypto world are taking their chances on whether a spot Ether (ETH) exchange-traded fund (ETF) will receive approval from the United States Securities and Exchange Commission (SEC) before the end of May. On the Polygon-based crypto gambling platform, Polymarket, users have placed bets on the approval of a spot Ether ETF by selecting “Yes” or “No” options. The bets have reached a total value of over $2.4 million, with approximately 81% of gamblers being pessimistic about the ETF’s approval before May concludes. The value of the shares fluctuates based on the odds, similar to the crypto market. Currently, the value of a “Yes” share is $0.19, while a “No” share is worth $0.81, indicating that fewer gamblers believe in the approval before the end of May. The top holder for “Yes” shares has approximately $84,000 worth of shares, while the top holder for “No” shares possesses around $127,000. The betting market will be resolved if the SEC approves a spot Ether ETF before the deadline of May 31, 2024, at 11:59 ET, allowing holders of “Yes” shares to cash out their earnings. However, if there are no approvals before the specified date, the opposite outcome will apply. This is not the first time that traders have gambled on ETF approval results. In January, Polymarket users faced criticism on Reddit for betting on the approval of spot Bitcoin ETFs by the SEC. Despite the skepticism, the SEC ultimately approved the trading and listing of 11 spot Bitcoin ETFs on January 10. Grayscale, an investment management company, has expressed confidence in the approval of spot Ether ETFs in May. The company’s Chief Legal Officer, Craig Salm, stated that the SEC’s perceived lack of engagement with applicants does not necessarily indicate whether an ETF will be approved or not.
Spot Ether ETF approval results attract $2.4M worth of bets from crypto traders.