Crypto Traders Wager Over $2.4M on Spot Ether ETF Approval by May End
Summary:
Crypto enthusiasts are betting on the U.S. SEC deciding on the approval of a spot Ether (ETH) ETF by the close of May. Over $2.4 million have been wagered on Polygon-based site, Polymarket, with 81% of bets predicting no approval. 'Yes' and 'No' shares are purchased to represent bets, with current values at $0.19 and $0.81 respectively. The outcome based on SEC's decision determines the victors. It's not the first time crypto traders have gambled on ETF approval outcomes, with similar bets previously being placed on Bitcoin ETFs. Meanwhile, Grayscale Investments maintains confidence in the approval of the spot Ether ETF.
Crypto enthusiasts are wagering on the outcome of the U.S. Securities and Exchange Commission's (SEC) potential approval of a spot Ether (ETH) exchange-traded fund (ETF) before the end of May. Data from the Polygon-powered crypto betting platform, Polymarket, reveals that over $2.4 million in bets predicting the SEC's decision have been made. Surprisingly, 81% of the bets received are leaning towards the SEC not granting approval within the specified timeline.
The mechanics on Polymarket's platform involve traders purchasing either 'Yes' or 'No' shares to bet on the outcome they anticipate. The value of the share reflects the odds of the event and fluctuates alongside cryptocurrency market trends. Currently, the 'Yes' shares are valued at $0.19 while 'No' shares are worth $0.81, showing a lower confidence in ETH ETF's approval by the end of May. The highest bet for 'Yes' stands at approximately $84,000 whereas the largest 'No' amount is around $127,000.
If the SEC does approve the spot Ether ETF before the cutoff on May 31, 2024, at 11:59 ET, the 'Yes' shareholders will have the opportunity to collect their winnings. However, if the SEC doesn't approve it by then, the 'No' shareholders would be the victors.
Betting on sell-off outcomes is not a new trend in the world of crypto. Earlier on January 5, Polymarket participants faced backlash from Reddit Users for wagering on the SEC's approval of spot Bitcoin ETFs before January 15. The community labeled the bet as foolish, drawing comparison to risking dollars for the sake of gaining dimes. Meanwhile, one user humorously stated his willingness to risk his child's college fund as a wager. In total, these ETF predictions garnered $12 million worth of bets. Eventually, the SEC approved the listing and trading of 11 spot Bitcoin ETFs on January 10.
Investment management powerhouse, Grayscale, remains optimistic about the approval of spot Ether ETFs in May. On March 25, Grayscale's Chief Legal Officer, Craig Salm, commented on SEC's perceived "disengagement" with applicants, stating it doesn't necessarily hint at the approval or disapproval of an ETF.
In related news, KuCoin's recent $10M airdrop has been labelled desperate, while a single tweet has reportedly led to a $37 million boost for memecoin in Asia.
Published At
3/29/2024 1:58:11 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.