The long-awaited arrival of a spot Bitcoin exchange-traded fund (ETF) in the US may soon become a reality, with rumors that BlackRock’s application is on the verge of being approved.
Amid the excitement, a new crypto project called Bitcoin ETF Token (BTCETF) has launched, aiming to allow investors to speculate on the market impacts of an ETF approval.
As prominent asset managers await a decision from the SEC regarding their filings, the BTCETF project offers a unique way to gain exposure to the ongoing hype.
How Bitcoin ETF Token’s deflationary mechanism rewards long-term holders
The design of the BTCETF Token aligns with key milestones in the Bitcoin ETF approval process.
As each milestone is reached, such as an ETF approval date being announced or the first ETF going live for trading, a portion of BTCETF’s total supply will be burned.
The development team plans to burn 25% of the total token supply over time, bringing it from 2.1 billion BTCETF to 1.57 billion BTCETF.
This deflationary mechanism aims to increase scarcity and incentivize holding the token long-term.
Additionally, BTCETF incorporates staking rewards that will dynamically increase based on how long token holders decide to lock up their tokens.
The project’s whitepaper states that 25% of the total supply is allocated for staking, which promotes network security and stability.
Currently, the staking rewards stand at over 1,000%, set to decrease as more BTCETF tokens are pledged.
BTCETF presale offers early supporters advantageous pricing & access
The Bitcoin ETF Token presale is ongoing at btcetftoken.com, offering early supporters a chance to acquire tokens before the first Bitcoin ETF approvals potentially create a frantic environment.
Presale buyers have access to 40% of the total supply, which amounts to 840 million tokens, each priced at $0.005.
This presale aims to establish a robust community and kickstart awareness of the project’s unique value proposition of aligning with spot BTC ETF milestones.
Notably, the development team has opted to take a tier-based approach to the presale, meaning it will be split into ten stages, each with its own token price.
Each stage has an allocation of 84 million BTCETF tokens - once sold out, the next stage begins at a higher price point.
Through this setup, those who show the earliest faith in the Bitcoin ETF Token project will be rewarded with the most advantageous buying opportunity.
Demand for BTCETF tokens has already begun to rise, with the project raising over $150,000 in funding this week.
Bitcoin ETF Token launch focuses on liquidity & transaction tax reduction
Once BTCETF's presale has ended, the creators intend to launch the tokens on decentralized exchanges (DEXs) to democratize access to them.
Upon this launch, 10% of the total BTCETF supply will be used to provide liquidity, and a token-burning mechanism will go live in the form of a sell tax.
Initially, every BTCETF transaction will be subject to a 5% tax – meaning 5% of the transacted tokens are destroyed.
However, each time a real-world milestone is achieved, such as the first BTC ETF approval, the tax will decrease by 1%.
Therefore, once all milestones have been achieved, the transaction tax will be 0%, rewarding buyers who stick with the project through key events.
This decreasing tax setup also complements the deflationary token burn approach mentioned previously, intending to benefit BTCETF holders over time.
In summary, the Bitcoin ETF Token combines speculation with utility, creating an intriguing crypto asset that allows investors to participate in the buzz of possible spot BTC ETF approvals.
As the crypto community waits for more news on these funds, BTCETF’s presale is drawing attention, with early backers quickly taking advantage of the earliest price round.