Amid intense speculation, crypto enthusiasts have wagered over $2.4 million on Polymarket, betting on the U.S. Securities and Exchange Commission’s decision regarding the approval of spot Ether exchange-traded funds (ETFs) by the end of May.

Polymarket Traders Wager Over $2M on SEC's Ether ETF Decision by May End

Crypto gamblers are betting on whether the US Securities and Exchange Commission (SEC) will approve spot Ether exchange-traded funds (ETFs) by May 31, Cointelegraph reported.

Polygon-based crypto gambling site Polymarket reports that traders have placed "Yes" or "No" bets on whether a spot Ether ETF application will be approved before the end of May.

Over $2.4 million in bets have been placed, with approximately 81% of investors predicting that a spot Ether ETF will not be approved by the deadline.

Crypto traders buy yes or no shares based on their predictions of how things unfold. The share's value represents the bet's odds and fluctuates in line with the crypto market.

A Yes share currently costs $0.19, while a No share costs $0.81, indicating that fewer gamblers believe spot ETH ETFs will be approved by the end of May. The top trader for Yes owns approximately $84,000 worth of shares, while the top holder for No owns approximately $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 p.m. Eastern Time, the market will close, allowing holders of Yes shares to cash out. However, the opposite is true if no approvals are received before the deadline.

SEC's ETF Decisions Attract Bets from Crypto Traders, Surpassing $12M

This isn't the first time cryptocurrency traders have bet on ETF approval results. On January 5, Reddit users chastised Polymarket gamblers for betting on whether the SEC would approve spot Bitcoin ETFs by January 15.

One Reddit user described the betting as stupid, comparing it to putting up dollars to win dimes. Meanwhile, another joked about losing their children's college fund to place a bet.

On the predictions market, bets on ETF outcomes totaled at least $12 million. On January 10, the SEC eventually approved the trading and listing of 11 spot Bitcoin ETFs.

Grayscale, an investment management firm, has expressed confidence in the SEC's positive decision on spot Ether ETFs in May. On March 25, Grayscale's chief legal officer, Craig Salm, stated that the SEC's perceived "lack of engagement" with applicants does not predict whether an ETF will be approved or not.

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