Traders Bet $2.4M on Ether ETF Approval for Crypto

Crypto gamblers are engaging in a betting frenzy over the approval of a spot Ether (ETH) exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC) before the end of May. Polymarket, a crypto gambling site built on the Polygon network, is hosting these bets. Traders can place bets on whether or not the ETF will be approved, and over $2.4 million worth of bets have already been placed. The majority of these bets, around 81%, are pessimistic about the chances of approval before the deadline. Traders are buying shares representing their predictions, and the value of these shares fluctuates similarly to the crypto market.

At present, a Yes share is valued at $0.19, while a No share is worth $0.81. This indicates that fewer gamblers believe the ETF will be approved. The top trader for Yes holds about $84,000 worth of shares, while the top holder for No has approximately $127,000 in No shares. If the SEC does grant approval before May 31, those holding Yes shares will be able to cash out their earnings. Conversely, if approval is not given by the deadline, those holding No shares will benefit. This is not the first time such gambling has taken place – in January, Reddit users criticized Polymarket for allowing bets on whether spot Bitcoin ETFs would be approved by the SEC.

The total bets placed on ETF outcomes have already exceeded $12 million on Polymarket. Grayscale, an investment management company, has expressed confidence in the approval of spot Ether ETFs in May. Craig Salm, Grayscale’s Chief Legal Officer, stated that the lack of engagement between the SEC and applicants does not necessarily indicate the outcome of the approval process.

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