Traders wager $2.4 million on SEC’s verdict for Ether ETFs

Approximately 81% of participants predict that the SEC will not approve a spot Ether ETF before May 31

Cryptocurrency enthusiasts have staked over $2.4 million on Polymarket, placing bets on the United States Securities and Exchange Commission’s (SEC) decision regarding the approval of spot Ether exchange-traded funds (ETFs) by the end of May.

Crypto gamblers are placing their bets on whether the SEC will greenlight spot Ether ETFs by May 31 or not.

According to data from Polygon-based crypto gambling platform Polymarket, traders have taken positions by wagering “Yes” or “No” on whether a spot Ether ETF application will receive the SEC’s approval.

The total amount staked exceeds $2.4 million, with around 81% of participants predicting that the SEC will not grant approval for a spot Ether ETF by the deadline.

Traders on Polymarket acquire shares corresponding to their predictions, with share values fluctuating based on market sentiment. Currently, a Yes share is priced at $0.19, whereas a No share stands at $0.81, indicating a prevailing skepticism among traders regarding the approval of spot ETH ETFs before the end of May.

Among the participants, the leading trader backing the Yes outcome holds shares valued at approximately $84,000, while the top holder for the No outcome possesses shares worth around $127,000.

If the SEC does approve a spot Ether ETF before the deadline of May 31, 2024, the betting market will close, enabling holders of Yes shares to cash out their winnings. If no approvals are forthcoming before the specified deadline, those holding No shares will emerge victorious.

Interestingly, this is not the first instance where cryptocurrency traders have staked their funds on ETF approval outcomes. Back in January, Reddit users criticized Polymarket gamblers for their bets on whether the SEC would approve spot Bitcoin ETFs by January 15, likening the activity to a risky endeavor.

Notably, the SEC did approve all Bitcoin spot ETFs, including those from BlackRock, Grayscale, Fidelity, and others on January 10. This approval enabled Wall Street banks to invest in Bitcoin via spot ETFs, bridging the gap between institutions and the cryptocurrency market, and potentially leading to wider exposure and investment in the industry.

The total volume of bets placed on ETF outcomes has now surpassed $12 million on the predictions market.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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