Crypto gamblers are actively placing bets on whether spot Ether exchange-traded funds (ETFs) will receive approval from the United States Securities and Exchange Commission (SEC) before May 31.
According to Polygon-based crypto gambling site Polymarket, over $2.4 million worth of bets have been placed, with approximately 81% of traders betting against the approval of spot Ether ETFs before the deadline.
Crypto traders purchase shares representing their predictions, with the value of shares fluctuating based on market sentiment. Currently, Yes shares are valued at $0.19, while No shares are priced at $0.81, indicating higher skepticism about approval.
The top trader for Yes holds around $84,000 worth of shares, while the leading No holder has approximately $127,000 in shares.
If the SEC approves a spot Ether ETF before the May 31 deadline, holders of Yes shares can cash out their earnings. Conversely, if no approvals occur, No shares holders will benefit.
Similar betting activity occurred regarding spot Bitcoin ETFs in January, with Reddit users expressing skepticism and humor about the process. Despite criticism, the SEC eventually approved trading and listing of 11 spot Bitcoin ETFs on January 10.
Grayscale’s chief legal officer, Craig Salm, expressed confidence in a positive SEC decision for spot Ether ETFs by May, highlighting that the SEC’s lack of engagement with applicants does not necessarily indicate approval or rejection.
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