ETF-Effect

Bitcoin price has reaches $37,000, but the Bitcoin ETF Token has surpassed $150,000

The Bitcoin price has reached $37,000, recouping all losses since TerraUSD crumbled 18 months ago, but knowledgeable traders believe Bitcoin ETF Token ($BTCETF) is a more promising Bitcoin alternative.

Bitcoin ETF is a new cryptocurrency. Token's ICO is just a few days old, but it has already raised $150,000 from investors thanks to its bold pitch into the lucrative Bitcoin ETF concept that is driving the current crypto rise. $BTCETF is also gaining popularity because to its DeFi characteristics.

As speculative flows return to the market, crypto is seeing the return of animal spirits. Factors such as the Fed's interest rate hiking cycle halt or even termination, as well as the likelihood of a spot Bitcoin ETF debut, are reviving the Bitcoin and broader crypto bull run.

The state of play in other asset classes, particularly equities, is also enticing traders to re-enter the market, with the rise of the last year returning just 10% while Bitcoin has more than doubled in price, up 127% during the same period.

The positive funding rate in the perpetual futures market for Bitcoin and the growth in yields on offer in the decentralised finance (DeFi) space indicate the end of the so-called crypto winter.

The Bitcoin perpetual futures funding rate on an open-interest weighted basis has been averaging levels last seen in March of this year during the last few weeks. A positive funding rate shows that the market is dominated by long holdings.

Similarly, after reaching lows in 2021, total value locked (TVL) in DeFi protocols has already risen dramatically to $44 billion, but this is still a long way from the highs of 2021, when TVL hit $180 billion.

The Bitcoin ETF Token is an excellent method to participate in the Bitcoin ETF-inspired surge and the DeFi revival.

Pre-sale $BTCETF tokens can be purchased now and staked to receive an annual percentage yield of 1,584%. The staking smart contract has already received around 19 million $BTCETF tokens. The APY is dynamic, which means it is decided by the quantity of tokens staked, with each individual's payouts determined by their share of the staking pool.

Prospective purchasers must act quickly to lock in the lowest price, as the current stage finishes in less than 48 hours, after which the price jumps from $0.0050 to $0.0052 in Stage 2 of the ICO. There are ten pricing tiers in all, with the final price point being $0.0068, which is 36% more than the starting offer price.

The Bitcoin ETF Token's valuation is linked to the status of the spot Bitcoin ETF US Securities and Exchange Commission (SEC) clearance procedure, which started a minimum eight-day window on Thursday. For the period of this window, the SEC may proceed with issuing an approval order.

The SEC might, according to Bloomberg Intelligence analysts James Seyffart and Eric Balchunas, "theoretically issue approval orders." There are currently 12 Bitcoin ETFs seeking approval.

In their email to customers, the duo also stated that, while the eight-day window is a long shot, there is still a 90% likelihood of approval on January 10, when the ARK 21 Shares Bitcoin ETF comes up for review.

Grayscale Bitcoin Trust conversion negotiations have been announced - now is the moment to prepare yourself for a price explosion using Bitcoin ETF Token.

The idea of a spot Bitcoin ETF approval occurring before the ARK 21 Shares Bitcoin ETF deadline of January 10 was previously viewed as unlikely.

A similar procedure involving the Grayscale Bitcoin Trust's (GBTC) effort to convert to an ETF, on the other hand, has roiled the waters. As a series of incidents adds to FOMO, the window for positioning portfolios for the impending price explosion is closing.

According to a story in the media yesterday, the SEC has begun discussions with Grayscale about its application to convert its closed-ended trust to an open-ended ETF.

The key distinction between the two is that investors in an ETF can redeem money without altering the price. Closed-ended funds, such as the Grayscale Bitcoin Trust, have a set number of shares that trade on the open market, and their value fluctuates according to supply and demand.

Closed-ended trusts trade at a premium or a discount to their net asset value. In the instance of GBTC, it went from trading at a premium during the bull market to trading at a discount now, implying that the value of the shares is less than the value of the Bitcoin held by the trust.

If GBTC is authorised for conversion to an ETF, redemption of shares will be easier because ETF shares can only be sold back to the issuer - shares are generated or liquidated based on demand fluctuations, with the ETF's price established at the end of each day.

Another disadvantage of GBTC is that it must be purchased in the over-the-counter market, which excludes individuals of modest means, restricting its buyer profile to institutions.

Until now, the iShares Bitcoin Trust ETF has been the most eagerly followed product application, aside from the ARK 21 Shares ETF owing to its front position in the queue, because it is issued by the world's largest asset management, BlackRock.