Crypto gamblers are placing bets on whether a spot Ether (ETH $3,548) exchange-traded fund (ETF) will be approved by the United States Securities and Exchange Commission (SEC) before May 31.
Polygon-based crypto gambling site Polymarket shows that traders have placed “Yes” or “No” bets on whether a spot Ether ETF application will be approved before May ends.
Over $2.4 million worth of bets have been placed, with about 81% pessimistic about the chances of a spot Ether ETF approval before the end of May.
Spot Ether ETF approval’s betting market. Source: Polymarket
Crypto traders buy yes or no shares, depending on their predictions of how they expect things to go. The share’s value represents the odds of the bet and changes similarly to how the crypto market goes.
At the moment, the cost of a Yes share is $0.19, while No is worth $0.81. This means fewer gamblers believe in the chances of spot ETH ETF approvals before the end of May.
The top trader for Yes holds about $84,000 worth of shares, while the top holder for No has around $127,000 in No shares.
If the SEC approves a spot Ether ETF before the betting market’s deadline of May 31, 2024, at 11:59 ET, the market will resolve, meaning that holders of Yes shares will be able to cash out their earnings. However, the opposite also applies if there are no approvals before the date.
This is not the first time that crypto traders gambled on ETF approval results. On Jan. 5, Reddit users criticized Polymarket gamblers for betting on whether spot Bitcoin ETFs would be approved by the SEC before Jan. 15.
A Reddit user described the betting as stupid and said it was like putting up dollars to win dimes. Meanwhile, another joked that they were about to lose their kid’s college fund to place a bet.
The overall bets on the ETF outcomes have reached at least $12 million on the predictions market. The SEC eventually approved the trading and listing of 11 spot Bitcoin ETFs on Jan. 10.
Investment management company Grayscale has expressed confidence in the approvals of spot Ether ETFs in May. On March 25, Grayscale Chief Legal Officer Craig Salm said that the SEC’s perceived “lack of engagement” with applicants does not indicate whether an ETF will be approved or not.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
![Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/Coins/Ripple/Ripple_Coin_31_02_XtraSmall.jpg)
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
![Bitcoin price falls amidst German government transfers, miners activity](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bit-coin-symbol-flag-3d-illustration-59931110_XtraSmall.jpg)
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
![Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/Bitcoin_2_XtraSmall.jpg)
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
![Three reasons why altcoins could shake off losses this week](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/cryptos_XtraSmall.jpg)
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
Bitcoin: BTC price correction could end in July, according to seasonal data
![Bitcoin: BTC price correction could end in July, according to seasonal data](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin_5_XtraSmall.jpg)
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.