Bitcoin ETF Frenzy Brings Windfall Volume to Decentralized Predictions Platform Polymarket

Polymarket saw betting contracts worth more than $5.7 million change hands on Wednesday.

AccessTimeIconJan 11, 2024 at 9:45 a.m. UTC

Polymarket, a decentralized betting platform, reaped a windfall $5.7 million trading volume after the U.S. Securities and Exchange Commission (SEC) approved several spot bitcoin exchange-traded funds (ETFs) on Wednesday.

The surge compares with December's daily average of $300,000 and surpassed even leading NFT marketplace OpenSea, which registered a trading volume of $3.9 million, according to data shared by PolyMarket on social media platform X.

"Underrated winner of the Bitcoin ETF approval? Prediction markets. Polymarket did more volume than OpenSea today," said PolyMarket's repost of analysis by venture capital firm 1confirmation's Richard Chen.

For full coverage of bitcoin ETFs, click here.

Since its debut in 2020, PolyMarket has allowed investors to bet on the outcome of binary events like the spot ETF decision.

Last month, the platform listed a contract, "Bitcoin ETF approved by Jan 15," which expired Wednesday, with the SEC greenlighting ETFs. Traders wagered more than $12 million throughout the contract's lifetime, with some participants buying the "No" side shares as a hedge against potential rejection.

Activity picked up sharply ahead of Wednesday's SEC decision on ETF.
Activity picked up sharply ahead of Wednesday's SEC decision on ETF. (Dune Analytics)

Other key performance metrics have picked up the pace with volumes, with the number of active users on the platform surging to 1,258 on Wednesday. The number of monthly active users is currently 2,754, the most since April 2022.

Edited by Sheldon Reback.


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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.