Gamblers in the cryptocurrency world are eagerly placing bets on whether spot Ether exchange-traded funds (ETFs) will be approved by the United States Securities and Exchange Commission (SEC) before May 31. The popular crypto gambling site, Polymarket, reveals that traders have been placing bets on whether a spot Ether (ETH) ETF application will receive approval before the end of May. So far, over $2.4 million worth of bets have been made, with approximately 81% of gamblers expressing pessimism about the chances of approval before the deadline.
In this betting market, crypto traders purchase shares of either “Yes” or “No” depending on their predictions. The value of these shares represents the odds of the bet and fluctuates similarly to the crypto market. Currently, the cost of a “Yes” share is $0.19, while a “No” share is worth $0.81, indicating that fewer gamblers believe in the approval of spot ETH ETFs by the end of May. The trader with the highest holdings of “Yes” shares has approximately $84,000 worth, while the top holder of “No” shares has around $127,000.
If the SEC does approve a spot Ether ETF before the deadline, the betting market will be resolved, allowing holders of “Yes” shares to cash out their earnings. However, the opposite is also true if there are no approvals before the deadline.
This is not the first time that crypto traders have engaged in such gambling on ETF approval results. Back in January, Reddit users criticized Polymarket gamblers for betting on the approval of spot Bitcoin ETFs by the SEC. Despite the criticism, the overall bets on ETF outcomes reached at least $12 million on the predictions market. Eventually, the SEC did approve the trading and listing of 11 spot Bitcoin ETFs.
Grayscale, an investment management company, has expressed confidence in a positive decision by the SEC for spot Ether ETFs by 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.
In conclusion, the world of cryptocurrency gambling is abuzz with bets on the approval of spot Ether ETFs by the SEC. Traders are eagerly placing their bets, with the majority expressing pessimism about the chances of approval. Only time will tell if these predictions hold true.