A spot Bitcoin ETF is the big news of November. BlackRock and many other traditional asset management firms have applied to create a spot bitcoin fund to make it easier to invest in the coin.
The global demand for a spot ETF for digital currencies becomes even more evident when looking at the already existing crypto funds in Canada and Europe. The aggregate size of the bitcoin-ETF market is estimated at $4 billion, and this is nothing short of a shift in the world of global finance.
The approval of a Bitcoin fund in the U.S. could have a huge impact on the entire cryptocurrency industry, potentially boosting altcoin prices. However, the new Bitcoin ETF coin could benefit more than other tokens as its returns are based on this event.
How will the crypto market change after the Bitcoin ETF is approved?
The U.S. Securities and Exchange Commission (SEC) has again postponed the review date for bitcoin-ETF applications from several companies. These include Global X and Franklin Templeton. The regulator now has until February 19 and January 1, respectively, to approve or deny a request to launch a spot bitcoin fund in the US.
The SEC has acted in line with the predictions of various analysts who had speculated that the agency would delay the ruling for as long as possible. Nevertheless, market participants’ attention is on January 10, when the last deadline for the Commission’s review of ARK’s bitcoin-ETF application expires.
Despite the constant delays, industry experts still expect the Bitcoin ETF to be approved early next year. Meanwhile, cryptocurrency exchange Coinbase emphasizes in a recent study how spot bitcoin funds in the U.S. will affect the digital currency market and how BTC itself will benefit.
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First, ETFs could increase access to cryptocurrencies for a new class of investors who have historically been shielded from this asset class. These include registered deposit advisors, pension funds and other institutional organizations.
However, ETFs alone will not determine the long-term spread of bitcoin. As the report notes, the funds are merely a tool.
The second benefit of ETFs is that they open up new opportunities for communities that manage more than a third of all wealth in the United States. This means injecting new capital into the cryptocurrency market, although this process will take time, according to Coinbase.
Third, it will ease restrictions on the purchase and ownership of bitcoin by large organizations and money managers. Fourth, ETFs will increase the liquidity of cryptocurrencies and improve pricing across the market.
Finally, the approval of spot bitcoin funds could potentially lead to new financial products and coins. Loans, options and futures on digital coins could become available on regulated exchanges, while tokens like Bitcoin ETFs could become available on cryptocurrency exchanges and grow with the ETFs themselves.
Overall, the introduction of bitcoin spot funds could change the structure of the market. In particular the way cryptoassets are bought, sold or exchanged.
Bitcoin ETFs are an affordable way to capitalize on bitcoin fund approval
According to estimates by financial analytics firm Bloomberg Intelligence, the bitcoin fund sector has the potential to grow to $100,000 billion. The optimism about spot ETFs stems from the fact that institutional investors can only access futures ETFs for now. These funds have certain disadvantages, such as additional costs.
Investors who want to invest directly in BTC can do so on platforms such as Coinbase or Robinhood. However, such a solution is not suitable for fund managers, as they lose control over their clients’ assets.
For this reason, Chuck Camello, CEO of Essex Financial Services, believes that ETFs are a game changer. With a bitcoin fund, it would be simple and easy to do business transactions.
Overall, the approval of a bitcoin ETF could be one of the biggest developments ever in the cryptocurrency market. It will potentially boost the overall industry by hundreds of billions of dollars. This is expected to happen in the coming months and boost the price of BTC and all related altcoins, including Bitcoin ETFs.
3 reasons why Bitcoin ETF has raised $1.8 million dollars in 3 weeks
Bitcoin ETF is a useful cryptocurrency tied to the development stages of the first spot bitcoin fund in the United States. The pre-sale of this ERC-20 token is going quite well, as over $1.8 million has been raised in less than a month.
The coin’s roadmap is synchronized with expected events in the crypto-financial markets, such as Bitcoin ETF approval and Bitcoin reaching the $100k mark. With each phase reached, 5% of the BTCETF token supply is burned. Moreover, a transaction tax is accrued, which will also be reduced in phases: from 5% to 0% for each of the listed events in the project roadmap.
Given that the new coin was designed specifically with the Bitcoin ETF endorsement in mind, there is reason to believe that its value could rise faster than other assets. Some analysts even suggest that the altcoin could generate 10 times earnings.
In addition to being tied to key events, this coin has other significant advantages. The project provides a steaking function, whose rate currently exceeds 190% APY.
The total number of BTCETF tokens is 2.1 billion, of which 840 million are allocated for pre-sale, i.e. 84 million for each round. 25% of the supply is for staking, 25% for the burn mechanism, and 10% for liquidity on decentralized exchanges.
The coin will be valued at $0.0068 at the final stage, while BTCETF is currently worth only $0.0058. Additional benefits:
- The deflationary mechanism serves to stabilize the value and encourage the growth of the remaining tokens.
- The company’s website has a section called “Latest Bitcoin ETF News.”
- Early investors can start receiving staking rewards as early as the presale.
Wrap
Crypto analysts predict that 12 ETF applications could be approved by the SEC in the first quarter of next year.
According to Coinbase representatives, the topic of spot funds is drawing attention to bitcoin at an opportune time. Experts believe that there are fewer and fewer alternatives left in the world for a safe haven from inflation. Ultimately, the exchange is making it clear that ETFs make bitcoin an even more attractive asset in 2024. Given the growing adoption of BTC, the Bitcoin ETF token has a chance to gain a foothold in the market.
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Author: Saifedean Ammous, an expert in cryptocurrency economics.
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