Cointelegraph Team
Cointelegraph
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
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.