The price of Bitcoin just reached $37,000, making up for all the losses suffered since the implosion of TerraUSD 18 months ago. However, savvy traders believe Bitcoin ETF ($BTCETF) token is a Bitcoin alternative with greater potential.
The ICO of the new cryptocurrency Bitcoin ETF Token is only a few days old, but attracted $140,000 from investors due to its bold move into the lucrative Bitcoin ETF theme that underpins the current crypto rally. $BTCETF is also attracting attention due to its DeFi attributes.
Crypto is thus seeing the return of animal spirits as speculative flows return to the market. Bitcoin’s boost and general crypto bull run are factors, as are the possible end of the Fed’s interest rate hike cycle and the prospect of a one-time Bitcoin ETF launch.
The situation in other asset classes, especially stocks, is also encouraging traders to re-enter the market, where last year’s rally only returned 10%, while the price of Bitcoin has more than doubled, up 127% over the same period.
The positive funding rate in the Bitcoin perpetual futures market and the rising yields offered in the decentralized finance (DeFi) space are indicative of the end of the so-called crypto winter.
Over the past few weeks, the funding rate for Bitcoin perpetual futures on an open interest-weighted basis has averaged levels last reached in March of this year. A positive funding rate indicates a preponderance of long positions in the market.
Likewise, after the declines last recorded in 2021, the total value locked (TVL) in DeFi protocols has now increased sharply to $44 billionalthough this is still far from the highs of 2021, when TVL reached $180 billion.
The Bitcoin ETF token is a smart way to take part in this Bitcoin ETF-inspired rally and DeFi renaissance
$BTCETF tokens can be purchased in presale today and staked to obtain an annual percentage yield currently of 1,584%. Nearly 19 million BTCETF tokens have already been deposited into the staking smart contract. The APY is dynamic, meaning it is based on the number of tokens staked, with each individual’s rewards determined by the percentage of the staking pool they hold.
In order to guarantee the lowest prices, potential buyers will need to act quickly, as the current stage ends in less than 48 hours, after which the price will increase in stage 2 of the ICO from $0.0050 to $0.0052. There are 10 price levels in total, ending at an amount of $0.0068, which is 36% above the opening price of the offer.
THE Bitcoin ETF token ties its valuation to the progress of the Bitcoin ETF spot approval process by the Securities and Exchange Commission (SEC), for which a minimum eight-day window opened on Thursday. During this window, the SEC has the option to issue an approval order.
According to Bloomberg Intelligence analysts James Seyffart and Eric Balchunas, the SEC could “in theory issue approval orders.” There are 12 spot Bitcoin ETFs awaiting approval.
The pair also added in their note to clients that while the eight-day window is long, they maintain their previously stated position that there is still a 90% chance of approval on January 10, when the deadline for SEC response on ARK 21 Shares Bitcoin ETF.
Bitcoin Trust Conversion Discussions Reported – Time to Position for a Price Explosion with the Bitcoin ETF Token
The possibility of a one-time approval of the Bitcoin ETF before the January 10 deadline for the ARK 21 Shares Bitcoin ETF was initially not considered very likely.
However, a parallel process regarding the attempt to convert the Grayscale Bitcoin Trust (GBTC) into an ETF has shaken things up. The opportunity to position portfolios for the next price explosion narrows as a constellation of events adds to FOMO.
Yesterday, a report emerged in the media claiming that the SEC had begun discussions with Grayscale regarding its request to convert its closed-end trust into an open-ended ETF.
The crucial difference between the two is that investors can redeem funds in an ETF without affecting the price. Closed-end funds like the Grayscale Bitcoin Trust have a fixed number of shares that trade on the open market, and their value changes based on supply and demand.
Closed trusts trade at a discount or premium to their net asset value. In the case of GBTC, it went from trading at a premium during the bull market to trading at a discount today, meaning the value of the shares is less than the value of the Bitcoin held by the fund.
If the GBTC to ETF conversion is approved, the redemption of shares will be less problematic because the ETF shares can only be resold to the issuer – shares are created or liquidated based on fluctuating demand , with the price of the ETF being fixed at the end of each day.
Another disadvantage of GBTC is that it must be purchased on the over-the-counter market, which therefore excludes investors with modest means, limiting the buyer profile to only large institutions.
So far, the most closely watched ETF application, aside from the ARK 21 Shares ETF due to its position at the front of the queue, is the iShares Bitcoin Trust ETF, as it is issued by the largest asset manager in the world, BlackRock.
Bitcoin Spot ETF Will Transform the Market – Token Bitcoin ETF Appeals to Short-Term Traders and Long-Term Investors
Regardless of which spot Bitcoin ETF hits the market first, the entry of a spot instrument will have a seismic impact on the market. The US ETF market is valued at approximately $7 trillion and if the impact of the introduction of a gold ETF is anything to go by, a spot Bitcoin ETF will be transformative.
Retail and institutional market participants will have a regulated way to gain exposure, while the issuer of the funds will need to purchase Bitcoin on the open market to hold their funds.
With only a limited number of Bitcoins in circulation and demand ready to explode, it’s unclear where the price could end up as the bull market gets underway.
The bulls are also keenly aware of the Bitcoin halving event taking place in April next year and how this quadrennial reduction in rewards paid to miners for producing blocks has already marked the start of ‘a rally to new heights.
For all of the reasons above, it makes sense that a growing number of the riskiest traders are operating long Bitcoin positions. Depositing into DeFi lending protocols in order to access leverage is driving the higher yields now offered in the space.
In this very positive market configuration, Bitcoin ETF Token staking yields make it an attractive proposition for DeFi players. Bitcoin ETF Token is also a lower risk, higher reward propositionmaking it attractive to speculative traders and long-term investors.
Instead of the source of returns being depositors of stablecoins in lending protocols, Bitcoin ETF Token simply allocates a percentage of its token supply to pay out rewards, thereby reducing the risks associated with initiating returns.
Burn mechanism tied to real-world Bitcoin ETF spot events means $BTCETF holders benefit directly
The story doesn’t end there: the Bitcoin ETF Token also has a deflationary burn mechanism that supports prices as it reduces the total supply of tokens.
The Bitcoin ETF token launches with a 5% burn on all transactions. Until 25% of the total token supply can be burned.
Cleverly, the burn mechanism has been correlated with real-world events related to the Bitcoin ETF spot news feed, where milestones such as approval and launch dates and the level of assets under management (AUM), trigger burn events.
For example, when the trading volume of $BTCETF reaches $100 million, the transaction tax increases from 5% to 4%. There are other smart steps, like when the first spot Bitcoin ETF is approved, the sales tax is reduced from 4% to 3%.
$BTCETF is the ideal vehicle to help you position your portfolio to take advantage of the Bitcoin ETF FOMO spot.
Bitcoin ETF Token has a total supply of 2.1 billion (2,100,000,000). The project website has a useful news feed to keep you up to date with all news related to Bitcoin ETFs and Bitcoin price.
The $BTCETF token is probably one of the smartest and cheapest ways to capture the blue-chip returns promised by launching a spot Bitcoin ETF. The token is on presale today and costs just $0.005. There is a low total cap of $4,956,000 million, which adds to FOMO.
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This article does not constitute investment advice in any way. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.