Bitcoin ETF Boom Boosts Volume on Polymarket Decentralized Predictions

• Polymarket Experiences Trading Volume Boost Following Bitcoin ETF Approval
• The Impact of Bitcoin ETF Approval on Prediction Markets
• Bitcoin ETFs and Polymarket
• SEC Decision Sparks Increased Activity

Polymarket Experiences Trading Volume Boost Following Bitcoin ETF Approval

Polymarket, a decentralized betting platform, experienced a significant increase in its trading volume, reaching $5.7 million, following the approval of several spot Bitcoin$42,260 -0.64% exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) on Wednesday. This volume surge represents a substantial increase from December's daily average of $300,000 and has surpassed even the leading NFT marketplace OpenSea, which recorded a trading volume of $3.9 million according to data provided by Polymarket.

The Impact of Bitcoin ETF Approval on Prediction Markets

Polymarket's repost of an analysis by Richard Chen from venture capital firm 1confirmation, suggests prediction markets as the overlooked gainers from the Bitcoin ETF approval. It was noted that Polymarket's trading volume on the day exceeded that of OpenSea's.

Bitcoin ETFs and Polymarket

Since its launch in 2020, Polymarket has provided investors with the opportunity to bet on the outcome of binary events, such as the spot ETF decision. In the previous month, the platform listed a contract Bitcoin ETF approved by Jan 15, which expired on Wednesday with the SEC's approval of ETFs. Throughout the contract's lifetime, traders bet more than $12 million, with some buying the No side shares as a hedge against potential rejection.

SEC Decision Sparks Increased Activity

Trading activity on Polymarket saw a significant increase in the lead-up to the SEC's ETF decision on Wednesday. Other key performance metrics also accelerated in conjunction with trading volumes, with the number of active users on the platform surging to 1,258 on Wednesday. The current number of monthly active users stands at 2,754, the highest since April 2022.

Edited by Jonathan Stoker