ETH spot ETF approval has arrived: Chaos on Polymarket!

Blockchain betting platform Polymarket saw over $13.2 million bet on whether the Ether ETF would receive approval, but chaos ensued when the meaning of “approval” was not fully explained.

The market closed on May 23 with a “Yes” result after the Securities and Exchange Commission gave the green light to multiple Ether ETF 19b-4 applications. Polymarket’s records show that there was a brief objection to the result, but it was ultimately resolved with the same “Yes” result.

The community is divided as the result arrives!

“Those who voted “No” argue that the call is wrong, saying that the US ETF needs an approved 19b-4 filing and S-1 Form to start trading on the stock exchange, and cannot exist without an S-1 filing. Analysts say that it may take months for the SEC to approve the S-1s of some “No” voters who may have invested their money.”

"Renowned “No” proponent “JustKen”, who changed his name to “RevengeTour19B4”, drew attention to X’s post stating that “ETFs are not considered ‘approved’ both under S-1 and ETFs” in response to Matthew Sigel, the Head of Digital Asset Research at VanEck, and said “19b-4 application was signed by the SEC.”

Disappointed bettors also pointed out that Matt Hougan, the Chief Investment Officer of Bitwise, said on the Unchained podcast that ETFs are a “nuclear key scenario” that an issuer must “turn” for approval of 19b-4 and S-1.

By the way, some from the “Yes” side, claim that the ETFs are not supposed to start trading on May 31st, but rather the market indicates “approval”. Others argue that SEC’s 19b-4 approvals are considered as final approvals and Form S-1 approvals are generally always followed.

This article does not contain investment advice or recommendations. Every investment and trading activity involves risk, and readers should conduct their own research when making decisions.