Big Bucks At Stake: Crypto Traders Wager $2.4M On Upcoming Spot Ether ETF Verdict

A mere 19% of gamblers wagering on the U.S. SEC’s decision regarding spot Ether ETFs predict a positive outcome by the May deadline.

Crypto enthusiasts are speculating on the approval of spot Ether exchange-traded funds (ETFs) by the SEC before May 31.

Traders on the Polygon-based Polymarket platform are betting on the approval of a spot Ether ETF application, with over $2.4 million at stake.

Approximately 81% of bets placed on Polymarket express pessimism about the approval of a spot Ether ETF before the deadline.

Crypto traders purchase shares based on their predictions, with the value fluctuating akin to the crypto market.

Currently, a Yes share costs $0.19, while a No share is priced at $0.81, indicating fewer believers in spot ETH ETF approval by May’s end.

The top Yes trader holds around $84,000 in shares, while the leading No holder has approximately $127,000 in shares.

If the SEC approves a spot Ether ETF by May 31, 2024, at 11:59 pm Eastern Time, the market will resolve, enabling Yes share holders to cash out. Conversely, if no approval occurs before the deadline, the opposite holds true.

Crypto traders have previously speculated on ETF approval outcomes. On Jan. 5, Polymarket saw bets on SEC approval of spot Bitcoin ETFs before Jan. 15, drawing criticism from Reddit users.

Reddit users criticized the betting as imprudent, akin to risking dollars to gain cents. Some humorously contemplated wagering their child’s college fund.

Bets on ETF outcomes have surpassed $12 million. The SEC greenlit the trading and listing of 11 spot Bitcoin ETFs on Jan. 10.

Grayscale, an investment management firm, remains optimistic about SEC approval for spot Ether ETFs by May. Chief Legal Officer Craig Salm noted that the SEC’s perceived lack of engagement with applicants doesn’t necessarily predict approval.

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