Polymarket receives complaints over $13M Ethereum ETF bet ‘approved’
Polymarket users who lost money against spot ether (ETH) exchange-traded funds (ETFs) are crying foul over the decentralized betting platform, arguing that the bet still stands.
A betting market on the blockchain platform has seen more than $13.2 million worth of bets on whether the Ether ETF will be approved on May 31 — but doesn't specify exactly what “approved” means.
The market closed on May 23 with a “yes” result, after the Securities and Exchange Commission's 19b-4 green light for many ether ETFs. Polymarket logs show the result was briefly debated but ultimately resolved with a unanimous “yes” result.
But “no” voters argue that the call is incorrect, that a U.S. ETF requires an authorized 19b-4 filing and Form S-1 to begin trading on an exchange, and without an S-1 filing, it can't exist. Yes” result.
Analysts say it could take months before the SEC approves the S-1s, which some “no” voters may have banked on.
Prominent “No” bidder “JustKen” — who changed his name to “RevengeTour19B4” after the saga — pointed out to VanEck Digital Assets head of research Matthew Siegel ex-post that “ETFs are not considered ‘approved'” until both the S-1 and 19b-4 filings are signed by the SEC. “
Disgruntled punters also had Bitwise Investments chief Matt Hogan tell the Uchained podcast that ETFs are a “nuclear key situation” and that the issuer must “turn around” to approve 19b-4 and S-1.
Meanwhile, some in the winning “yes” camp expressed “approval” of the market, not that ETFs should begin trading by May 31.
Related: SEC's ETF Ruling Means ETH and ‘Many' Other Tokens Are Not Securities
Others argue that SEC 19b-4 approvals are considered final approvals, with Form S-1 approvals always following.
Risk Labs, the company behind UMA, a blockchain oracle platform that provides a platform for handling data disputes on Polymarket, did not immediately respond to a request for comment on the situation.
Polymarket's development company, Adventure One QSS Inc., did not immediately respond to a request for comment.
Magazine: Cryptocurrency Trading Addiction – What to look for and how to treat it
