The recent announcement by the U.S. Securities and Exchange Commission (SEC) greenlighting eight spot Ethereum ETFs has sparked a contentious debate over the interpretation of "approval." On the prediction platform Polymarket, crypto enthusiasts wagered over $13 million on whether the SEC would approve spot Ethereum ETFs by May 31, leading to discussions about the actual occurrence of approval.

This wager, initiated on January 9, stemmed from speculation surrounding the SEC's decision regarding the first Bitcoin ETFs and the classification of Ethereum as either a security or a commodity, a determination largely influenced by Bitcoin's regulatory status.

As the potential approval date approached, financial analysts and crypto experts shared increasingly pessimistic forecasts, citing the SEC's strict stance on other crypto ventures. Some suggested that a delay might be advantageous, with JP Morgan estimating a 50% chance of approval the previous month.

However, sentiment shifted as Coinbase predicted an imminent Ethereum ETF approval, and Bloomberg analysts raised their approval odds from 25% to 75%. This optimism bolstered Ethereum's price.

On Polymarket, participants closely followed these developments, with the odds of SEC approval surging from 13% to over 50% on Monday. The SEC's announcement on Thursday approving applications for spot Ethereum ETFs prompted celebrations among many bettors, who believed the bet's outcome had been confirmed.

However, despite the initial jubilation, a significant number of participants argued that the terms of the bet were unclear. While the SEC had approved rule changes allowing major investment firms like Grayscale, BlackRock, Fidelity, and VanEck to proceed with their spot Ethereum ETF plans, these specific funds had not yet received final approval, a process that might extend beyond Polymarket's May 31 deadline.