Victoria VR leverages AI and blockchain to enhance gaming with immersive VR experiences, AI-driven interactions, and a self-sustaining digital economy.

With over 3 billion gamers worldwide (and counting), the 

 industry needs to constantly find new and innovative ways to keep their myriad participants entertained and engaged. Technologies such as virtual reality (VR) and the 

, which include augmented reality (AR) and 

, have contributed substantially to creating an immersive gaming experience.

As the metaverse continues to unlock endless opportunities for the gaming world, Victoria VR has set out on a mission to integrate artificial intelligence (AI) to improve gaming experiences.

Let’s take a deeper look at Victoria VR and the way it’s leveraging AI to tap into the gaming metaverse and upgrade users' experiences.

Victoria VR is a blockchain-powered virtual reality (VR) AI metaverse designed to leverage AI and VR to provide an immersive web3 gaming experience. 

The Victoria VR blockchain project is on a mission to create a thriving and immersive infrastructure in which the gaming world can explore its metaverse in an enhanced way.

Through AI, Victoria VR provides gaming developers with AI tools to build immersive games in a secure, transparent and scalable ecosystem. With features like the VR AI Builder and AI Agents, Victoria VR provides an AI-powered ecosystem to interact with its metaverse.

Its native token, VR, is poised to provide users with a self-sustaining virtual economy in which gaming, blockchain, the metaverse and VR content creation can interact cohesively.

To shape the future of VR through an AI-powered metaverse for immersive gaming, Victoria VR has created the following features.

The VR AI Builder is designed to simplify developers' challenges when creating VR content. Currently, VR game development requires programming skills and significant resources in terms of time and money. However, the VR AI Builder is integrated with OpenAI, making it simple to use with simple text commands. With VR AI Builder, anyone can quickly create VR content, thereby reducing costs, saving time and supporting scalable growth. It also supports integrating new AI technologies as they continually emerge.

The VR AI Builder empowers both novices and experienced developers to create and expand virtual worlds, complete with games and assets. Furthermore companies can use the VR AI Builder to create virtual buildings, showrooms and storefronts; simulate training; and provide immersive experiences to their customers.

The VR AI Builder is driven by the VR token, which plays a crucial role in building and monetizing virtual worlds.

At the heart of Victoria VR’s metaverse are its AI Agents, autonomous and intelligent creations that can independently interact and adapt in a virtual environment. These agents learn user behaviors and preferences in order to provide customized and effective support.

Creating VR AI Agents on the platform is accessible to everyone, and doesn’t require advanced technical knowledge. Some specific roles these agents can perform include NPCs in games, shopping assistants in virtual stores and even virtual teachers.

VRtap is a Telegram-based clicker PvP game by Victoria VR that uses feng shui to immerse players in an elemental adventure, helping the project community stay connected and engaged.

Some of the features of VRtap include the following:

VR is the native token that powers the Victoria VR platform. It's designed to facilitate seamless interaction on the platform and ensure a self-sustaining economy. The total supply of VR is 16.8 billion tokens, with a current circulating supply of just under 6.85 billion.

As a utility token, VR has numerous use cases on the platform, including staking, governance and diverse use in powering Victoria VR's AI and gaming aspects.

The VR token is crucial to the self-sustaining aspect of Victoria VR's gaming pillar. It’s designed to ensure long-term sustainable value for the various stakeholders in the ecosystem.

The VR token is essential for accessing and monetizing the VR AI Builder feature. Builders need VR tokens to buy VR land in order to start using the feature. Once you have VR content, you can monetize it and receive payments in VR tokens.

Furthermore, the platform collects part of the fees generated through this feature in the form of VR tokens, which boosts circulation and enhances token utility.

The VR token helps create and fuel intelligent virtual experiences through VR AI Agents on Victoria VR. VR tokens’ use cases for VR AI Agents include the following:

VR tokens facilitate user interaction with the Victoria VR metaverse via both PC and mobile versions. Users can earn VR tokens through activities such as mining and community engagement. These tokens also ensure a cross-platform economy, whereby VR tokens earned from either version can be used across the Victoria VR ecosystem.

 Perpetual contract in the Innovation Zone with up to 20x leverage. Tokens listed in the Innovation Zone are typically from new projects that may be subject to higher volatility.

As of Feb 7, 2025, Victoria VR's price was $0.007863, a 98.7% drop from its all-time high (ATH) price of $0.61 on Dec 10, 2021, and a 67.7% increase from its ATL of $0.0047 on Jan 3, 2023.

Price prediction experts are cautiously bullish on the future price of the VR token. Experts at CoinCodex believe that VR 

 a maximum price of $0.01 in 2027, and increase to $0.03 in 2030. Meanwhile, DigitalCoinPrice’s forecasting experts believe that VR 

 $0.028 in 2027 and reach $0.0425 by 2030.

That said, these bullish predictions don't guarantee the future price of VR. We highly recommend you 

 before investing in VR or any other cryptocurrency.

Victoria VR is redefining the metaverse with its AI-driven, hyperrealistic virtual world. By blending blockchain technology with immersive VR, it offers an unparalleled digital experience so users can explore, interact and create with limitless possibilities.

Victoria VR’s integration of AI into gaming through the VR AI Builder and AI Agents gives it a competitive edge, and makes the project stand out in the web3 space, making its native token, VR, an asset to watch in the web3 space.

Beginner

Victoria VR.png

Victoria VR (VR): The Ultimate AI-Driven Metaverse Experience

Explore the difference between Spot and Perpetual Futures and find out how you can navigate volatile markets with these two trading methods.

Bitcoin moves 20% in an hour. Ethereum nose-dives as a whale dumps holdings. The crypto market is a poster child of volatility, and panicked traders may scramble. Others, calmer, may seize the chaos in order to profit. What separates these two outcomes? Often, it’s the trader’s hard choice of weapon.

Although spot trading and perpetual futures are both popular trading methods in crypto, their mechanics — and risks — are worlds apart. Spot trading offers simplicity and direct ownership, while perpetual futures provide leverage and flexibility. Each method carries its unique risks. 

In volatile markets, these tools behave differently, and a poor understanding of their dynamics can turn a calculated risk into a catastrophe. This article dissects spot and perpetual futures, explains why volatility amplifies their risks — and shows you how to choose the right strategy when markets go haywire. 

 is the buying or selling of a digital asset (like 

) for immediate delivery and settlement at its current market price. When you trade on spot, you directly exchange cash or 

 for the asset, with no expiration dates, 

You directly and physically own the asset as soon as the transaction is completed. The trade is settled on the spot (hence the name), meaning the exchange of the asset and the payment happen almost instantaneously, eliminating the risk of price fluctuations during the settlement period.

Say Bitcoin is priced at $100,000, and you buy 1 BTC on a spot exchange such as Bybit. You pay $100,000 (or equivalent in stablecoins) and immediately receive the Bitcoin in your wallet. If the price crashes to $90,000 the next day, your BTC is now worth $90,000 — a 10% loss. If, on the other hand, it surges to $106,000, your gain is 6%. The risk and reward are straightforward: you’re fully exposed to the asset’s price movement, with no amplified gains or losses. 

Here’s a visualization of the mechanics:

[Crypto Exchange] → [Deposit Fiat Currency/Stablecoins] → [Purchase Cryptocurrency on Spot Market] → [Wallet] 

 (or "perps") are derivative contracts or agreements to buy or sell an asset at a predetermined price at any time in the future. They let traders speculate on an asset’s price without ever taking ownership of it. 

Unlike traditional futures, which expire on a set date, perpetuals have no expiration — hence the name. Instead, they rely on funding rates to tether their prices to the underlying spot market. If combined with leverage, they’re a high-risk, high-reward tool for potentially profiting in volatile markets. 

Perpetual futures allow traders to use leverage, meaning the exposure is larger than the initial capital. For example, with 10x leverage, a $1,000 margin lets you open a $10,000 position. If Bitcoin rises 10%, your profit is $1,000 (10% of $10,000), doubling your initial margin. But if Bitcoin drops 10%, you lose your entire margin ($1,000) and face 

. Leverage magnifies volatility’s impact, turning small price swings into existential risks.

 is the collateral required to open a leveraged position (e.g., $1,000 for a $10,000 position at 10x), while the 

 is the minimum collateral needed to keep the position open. If your margin falls below this threshold, due to losses, you must add more funds or the exchange liquidates your position automatically. 

Let’s assume you open a 10x long on Ethereum with a $1,000 margin. If ETH drops 9%, your loss is $900, leaving $100 in margin. If the maintenance margin is 5% ($50), you’re still safe. But a 10% drop in Ethereum wipes out your margin, triggering liquidation. 

Funding rates are periodic payments (usually every eight hours) between 

 traders to keep perpetual futures prices close to the spot price. A positive funding rate exists when longs pay shorts. This happens when perpetuals trade above the spot price, incentivizing traders to sell (short). Negative funding rates — meaning that shorts pay long — occur when perpetuals trade below the spot price, encouraging buying (going long). 

In volatile markets, funding rates can swing wildly. For example, during a Bitcoin rally, excessive bullish sentiment may push perpetuals’ prices above spot prices, forcing longs to pay hefty fees to shorts. 

Trading a perp looks something like this:

[Trader’s Margin] → [Leverage (e.g., 10x)] → [Open Position] 

[Price Movement] → [Profit/Loss Calculated in Real Time] 

[Funding Rate Payments] (Every 8 Hours) 

[Liquidation if Margin < Maintenance Threshold] 

The Crucial Difference: Pricing Mechanisms

Traders must understand how prices are set in spot trading versus perpetual futures, especially in volatile markets, as mispricing can lead to unexpected losses or missed opportunities. 

 on a single exchange. When you buy Bitcoin on Bybit, the price reflects the highest 

 (sell order) in Bybit’s order book at that moment. When more people want to buy an asset than sell it, the price increases. Conversely, when more people want to sell than buy, the asset’s price drops.

However, spot prices can vary wildly between exchanges. High-volume exchanges, such as Binance or Bybit, typically have tighter 

 (smaller gaps between bid/ask prices). Regulatory restrictions and/or regional buying/selling pressure can also create price disparities. 

Perpetual futures prices aren’t tied to a single exchange. Instead, they track an index price, a weighted average of spot prices from multiple reputable exchanges. This arrangement prevents manipulation, and ensures fairness.

First, reputable exchanges with strong liquidity, such as Binance, Bybit and Kraken, are selected as contributors. Weights are then assigned based on trading volume, giving greater influence to exchanges with higher activity. The index price is computed using a weighted average, whereby (for instance) Binance contributes 50%, Bybit 30% and Kraken 20%, resulting in a balanced and representative market price.

Here’s a visual aid for the calculation: 

Index Price = (Binance Price × 50%) + (Bybit Price × 30%) + (Kraken Price × 20%).

Perpetual Futures Price ≈ Index Price + Funding Rate Adjustments 

Withdrawal halts occur when exchanges temporarily block users from moving assets off-platform. They are rare but catastrophic events, often triggered by extreme volatility, regulatory crackdowns or security breaches. These halts expose the fragility of spot markets, while highlighting the resilience of perpetual futures.

Imagine an exchange suddenly halts withdrawals. Its spot market turns into an isolated bubble, cut off from the broader crypto ecosystem. Here’s how this could happen:

 traders help balance prices across exchanges. If BTC is cheaper on one platform, some traders will buy it there and sell it on another where Bitcoin’s price is higher, keeping prices in sync. But when withdrawals are frozen, traders can’t move assets, making cross-exchange arbitrage impossible.

Let’s say Binance halts BTC withdrawals during a market crash. Panic selling on Binance drives BTC’s price down to $25,000, while on Bybit, it remains at $28,000. Under normal conditions, arbitrageurs would step in, buying cheap BTC on Binance and selling it on Bybit to close the gap. But with withdrawals locked, Binance’s price remains disconnected.

With liquidity trapped, bad actors can exploit the situation. A 

 could dump BTC on Binance, crashing its price to $22,000, while Bybit keeps trading at $28,000. Retail traders on Binance would suffer large losses as they’d be unable to transfer assets or take advantage of the price difference.

When withdrawals freeze, spot markets fracture, leaving traders stranded in a distorted price bubble, with no hope of escape until normal operations resume.

Perpetual futures contracts avoid the chaos of isolated spot markets by relying on an index price aggregated from multiple exchanges. This mechanism keeps them anchored to the broader market, even when individual platforms experience disruptions. 

For example, if Binance suddenly halts withdrawals, its BTC price may diverge from the rest of the market. However, because the index also includes prices from exchanges like Bybit and Kraken, it remains stable. Even with Binance carrying a 50% weight in the index, Bybit (30%) and Kraken (20%) ensure that the final calculation reflects a more accurate market value. This mechanism prevents traders from becoming trapped in a price bubble caused by a single exchange’s issues.

Another advantage is resistance to manipulation. If a bad actor tries to crash BTC’s price on one exchange, their influence on the index remains limited. To meaningfully distort the index price, they would need to control multiple major exchanges — a far more challenging and costly feat. 

This hardiness makes perpetual futures a more reliable option during crisis scenarios. Spot traders may get stuck with distorted prices when withdrawals are halted, but perps remain tethered to a broader market view. While they’re not immune to volatility, their reliance on aggregated data provides a crucial safeguard. However, traders must also consider funding rates and leverage risks.

Navigating a Withdrawal Halt: Staying Calm and Informed 

A crypto withdrawal halt — whether due to a flash crash, regulatory action or technical failure — can send traders into a frenzy. Prices may swing unpredictably as speculation runs wild and liquidity dries up. Nevertheless, survival in these moments is about keeping a level head.

Before making any moves, verify the situation. Fear-driven rumors spread fast, but official channels provide the facts. Exchanges like Bybit now offer real-time transparency on liquidations via their APIs, and CEO Ben Zhou has been vocal about publishing 

 during crises. Trust credible sources, not whispers from anonymous Telegram groups.

Emotional trading is the fastest way to lock in losses. Spot market prices on a halted exchange can detach from reality, plunging far below the broader market. Selling into that panic only benefits manipulators. Likewise, overleveraging on perpetual futures can backfire during times of extreme volatility. Traders who endure these moments best are the ones who stick to their risk management principles and wait for conditions to stabilize.

Bybit is setting new standards by committing to transparency, publicizing real-time liquidation data and encouraging open communication. During times of uncertainty, reliable data keeps traders grounded, helping them separate signals from noise and navigate volatility with clarity rather than fear.

Volatile markets test the strengths and weaknesses of both spot and perpetual futures trading. 

Cryptocurrency markets thrive on volatility, but surviving and profiting from volatility depends upon choosing the right tools. Spot trading offers direct asset ownership, simplicity and no liquidation risk, but it can be vulnerable to exchange-specific halts and price slippage during market turmoil. On the other hand, perpetual futures trading allows traders to profit in any market direction, benefit from leverage and avoid single-exchange manipulation through index-based pricing, but it also carries liquidation risks, complexity and funding rate costs. 

Regardless of your trading method of choice, risk management is crucial. Educate yourself and set 

 to minimize exposure. In addition, dive into Bybit’s 

 to sharpen your edge, and learn how to get started with 

Intermediate

spot vs perpetual futures.png

Spot vs. Perpetual Futures: Stay Ahead of the Curve in Volatile Markets

Ankr has been chosen to power TAC, a groundbreaking TON Network extension that brings full EVM compatibility to TON. 

The S&P 500 rose 0.36%, led by consumer staples, financials, and tech, as investors awaited the jobs report. Gold fell 0.38% to $2,852 amid rising yields and profit-taking before the jobs report but remains near YTD highs. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.81%, with Bitcoin and Ether dropping by 0.44% and 2.91%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is BERA, which surged nearly 3.0% following Berachain's mainnet launch and $632M BERA airdrop announcement.

Berachain (BERA), founded in 2021, is a Layer 1 blockchain with Proof-of-Liquidity consensus, ensuring security and liquidity while maintaining full Ethereum compatibility. Berachain launched its 

 on February 6, alongside a $632 million BERA airdrop to eligible users. Around 79 million BERA tokens were distributed, primarily to Bong Bears NFT holders. BERA serves as the network’s gas and staking token. Berachain uses a Proof-of-Liquidity consensus to enhance security and liquidity. Token allocations also include funds for community initiatives, ecosystem R&D, and institutional investors.

Check Out the Latest Prices, Charts, and Data of 

, a groundbreaking TON Network extension that brings full EVM compatibility to TON. TAC enables Ethereum developers to deploy seamlessly on TON while unlocking access to 100M active wallets and Telegram's 950M users. Built using the Cosmos SDK and Ethermint, TAC integrates Babylon’s Bitcoin staking protocol for enhanced security and decentralization. Assets like Teleport BTC (tgBTC), stTON, and tsTON will support restaking within TAC’s infrastructure. As the first blockchain leveraging Ankr’s Bitcoin Secured Infrastructure, TAC bridges Ethereum’s liquidity with TON’s scalability, advancing Web3 growth within Telegram’s ecosystem.

Yesterday, BTC Spot ETFs had $140.2M in outflows, with GBTC losing $42.2M and non-GBTC funds dropping $98.0M.

Kuroro Wilds, an Ethereum RPG on Ronin, launched a 

 campaign ahead of its KURO token launch. Players earn rewards by completing quests, social tasks, and referrals. The event offers 10M KURO and Treasure Eggs, running until mid-February. VIP pass holders get extra rewards, while top players can win additional prizes. KURO’s launch date is yet to be announced.

3.png

Ankr Powers TAC to Bridge TON and Ethereum with Bitcoin-Secured Infrastructure for Enhanced Web3 Growth

Discover key strategies for P2P crypto sellers on Bybit. Learn how to off-ramp securely, set competitive prices, and maximize profits with zero fees.

Crypto off-ramping and on-ramping — respectively, converting your cryptocurrency into fiat money to take it off-chain, and buying crypto funds with fiat currencies — are key processes that support the tight connection between the traditional finance and cryptocurrency markets. 

Among the various key methods of off-ramping and on-ramping, 

 (P2P) trading stands out for several reasons. It lets you cut out intermediaries from your crypto buy or sell transactions, and creates opportunities to use a wide range of national currencies, among other advantages. However, many P2P platforms pose serious risks to buyers and sellers, with 

 and disputes between the transacting parties common on some less-regulated and less secure platforms.

Bybit’s P2P Trading platform allows you to use crypto off-ramping and on-ramping services in complete security, as it benefits from the platform’s escrow system, user reputation model and well-protected trading environment offered by one of the leading cryptocurrency exchanges in the world. For sellers of crypto for fiat, Bybit’s P2P Trading offers some of the best options around in terms of costs, convenience and security. This article covers all the nuances of P2P off-ramping, and shows you how you can off-ramp via the Bybit P2P Trading platform.

Understanding On- and Off-Ramping as a P2P Seller

While closely connected, the traditional and crypto finance systems operate as separate markets of their own. You can’t use your dollars, euros, pounds or yuan in their original form on the 

 (BTC) blockchain, or invest in a yield-bearing product on a 

 (ETH). Likewise, buying your morning coffee or that nice car you’ve been saving for in bitcoins or other cryptocurrencies is still a rarity. However, the number of traditional retailers accepting direct crypto payments is on the rise.

In order to move your funds between the traditional finance system and the cryptocurrency world, you’ll need to use on-ramping and off-ramping.

On-ramping refers to the conversion of fiat currency into crypto to bring your funds 

. Most people who start their cryptocurrency journey will use on-ramping services to acquire their first crypto holdings. Seasoned crypto users also make extensive use of on-ramping when moving funds between a 

 environment and traditional finance sources.

On-ramping solutions let you pay using widely accepted bank cards, mobile wallets, bank transfers and more. As long as your card or account gives you access to some fiat money, you can acquire cryptocurrency in a matter of seconds (or minutes, in most cases). Various brokerages and P2P platforms are also available to facilitate easy on-ramping.

Off-ramping is the reverse process of on-ramping: it allows you to sell your cryptocurrency for fiat currency in order to return your funds to the traditional finance ecosystem. Using off-ramping services, you can convert a wide range of cryptocurrencies into the many national fiat currencies on offer. Just as with on-ramping, you can choose from various methods to off-ramp. These include selling crypto on exchange platforms, P2P marketplaces or via some payment processors in order to have your fiat funds deposited into your bank account, mobile wallet or bank card.

Among the multiple methods for off-ramping, P2P operations are particularly attractive, due to the absence of intermediary costs. In particular, Bybit’s P2P Trading allows you to off-ramp with 

, offering multiple payment methods and direct transactions with buyers around the world.

Finding the Right Way to Off-Ramp Crypto as a Seller

Selling crypto in an off-ramping environment can be competitive, as buyers will see offers from numerous sellers offering the same crypto asset. Payment processing issues — or fraudsters — may also jeopardize your selling experience. Some key points to consider when you sell crypto for fiat currency are as follows:

Whether you choose bank transfers, online payment processors like PayPal, mobile wallets or other formats to off-ramp your funds, ensure that your preferred method supports the type of national currency you sell for, the mode of transfer and any appropriate daily (or other) limits.

The Bybit P2P platform also provides various tools to avoid some common issues in off-ramp sales. For instance, if you’ve completed an order, and have realized that the buyer has underpaid (or hasn’t paid at all), you can quickly request a top-up or send an urgent payment request in the 

. If the buyer refuses to rectify the issue, you can also file a dispute with a Bybit P2P Appeal Specialist for investigation.

You can adopt certain strategies to maximize your profits as a P2P crypto seller. One way to optimize your trading outcomes is to regularly update your listings, based on the prevalent market conditions and the overall activity on the trading platform. For instance, being active during peak trading hours can work wonders for achieving successful sales.

Building and maintaining an exemplary seller reputation on the Bybit P2P platform is also important. One particularly useful feature is that you can transparently view key reputational metrics, such as successful order completion rates. By maintaining perfect order completion rates, you instill trust in your services. Earning the 

designation is also recommended to help boost your reputation.

Finally, being flexible in terms of your order options is also a key way to optimize your off-ramp sales. For instance, traders who offer to sell their crypto for a broader range of national fiat currencies are likely to attract more buyers. Try to expand your offer to cover as many fiat currencies as you can handle practically.

To start as a seller on the Bybit P2P platform, you must first deposit your crypto funds into your Funding Account. During transactions, your funds will be held in escrow to ensure a safe trading experience for all parties involved. To further boost your sales, you can choose to be a maker and advertise your listings by setting preferred rates, payment methods, order limits and fiat currencies accepted.

 — classifications that carry significant reputational benefits — you can initiate the verification procedure by first providing a security deposit. 

: In order to ensure that you have enough funds to provide the security deposit, keep a balance of at least 1,000 

Last but not least, ensure that you manage your interactions and transactions efficiently by promptly releasing funds during sales. Maintaining high order completion rates and a great reputation are critical to instilling trust among potential buyers. Additionally, sellers with poor transaction histories risk having their sale ads hidden.

Bybit’s P2P Trading platform offers a secure and efficient environment in which to sell your crypto for off-ramping purposes. The platform’s escrow system, flexible advertising options, zero transaction fees, global access and choice of over 650 payment methods, 300 cryptocurrencies and 60 fiat currencies make it one of the best products on the market for off-rampers. Moreover, its competitive rates and flexible currency options for buyers help you further optimize your selling experience on the platform for profitable, efficient and easy off-ramping.

Bybit P2P sell crypto.png

Bybit P2P for Sellers: Your Key to Smooth Crypto On- and Off-Ramping

Bybit Learn

Bitcoin

If the SEC approves a Bitcoin spot ETF application, it would mark a seminal moment for both the crypto industry and the financial markets. Learn more here.

2401-T16454_Skinny_Banner_for_Blog_and_Learn_Row_53_728x90.png

Skinny_Banner_-_Sign_Up.png

Bitcoin_Spot_ETF_Approval_-_What_It_Means_for_Crypto_Investors_Infographic_1600x2078.png

) has set the crypto world abuzz. As a Jan 10, 2024 

 approached, rumors were swirling and causing market volatility. The 

 of the U.S. Securities and Exchange Commission (SEC) was hacked on January 9 to announce a phony approval before Bitcoin spot ETFs were finally approved a day later. What's all the fuss about — and why does it matter? 

This article unravels the Bitcoin spot ETF approval and explains how it works, the status of pending applications and its implications for crypto investors.

A Bitcoin spot ETF is an investment product that tracks the price of Bitcoin in the spot market, where it’s bought and sold for immediate delivery.

 aims to mirror the spot Bitcoin price by buying Bitcoin in a secure digital vault. In contrast, current Bitcoin ETFs use 

 or other indirect instruments to gain exposure to Bitcoin. With the advent of a Bitcoin spot ETF, investors could access Bitcoin spot exposure on a traditional stock exchange, such as the NYSE or the Nasdaq, without directly buying and storing Bitcoin.

A Bitcoin spot ETF would work similarly to other ETFs that track commodities or currencies. The fund would have a sponsor or manager, who would create and redeem the fund's shares in exchange for Bitcoin. In addition, it would have a custodian to store and secure Bitcoin on behalf of the fund, which would charge a fee for its services and aim to track the performance of a Bitcoin price index.

Investors who want to invest in Bitcoin through a spot ETF wouldn’t need to buy, sell or store Bitcoin themselves. They would simply buy and sell shares of the fund on the stock exchange, just as with any other stock. A Bitcoin spot ETF would provide several benefits for investors:

Current Landscape of the Bitcoin Spot ETF

, Valkyrie, ARK 21Shares, Bitwise and Fidelity applied for approval for spot Bitcoin ETFs from the U.S. Securities and Exchange Commission (

the SEC needed to approve both the 19b-4 and S-1 filing forms for each ETF. 

 believed they were close to final approval after discussing final wording changes on spot Bitcoin ETF filings with the SEC on Friday, Jan 5, 2024, and many expected approval as early as Jan 9 or 10. 

By January 9, several leading financial firms had updated their S-1 filings, signaling the final stages before the possible approval of their respective spot Bitcoin ETFs. Notably, these filings have revealed sponsor fees, many of which are being announced for the first time. 

For example, BlackRock initially set a sponsor fee of 0.3%, which was later reduced to 0.25%. Its original discount was also reduced from 0.2% to 0.12% during its first year or until the ETF accumulates $5 billion in assets. VanEck has opted for a lower permanent fee of 0.25%, while WisdomTree's fee is higher at 0.3%. Bloomberg ETF analyst Eric Balchunas commented on the competitiveness of BlackRock's fees, highlighting the challenging environment for other firms. 

Similarly, ARK 21Shares reduced its fee from 0.8% to 0.21%, with no fees for the first six months or until reaching $1 billion in assets, a move Balchunas described as significant in the context of the ongoing fee wars. Additionally, Grayscale filed an amended S-3 form to convert its flagship Bitcoin trust into an ETF, lowering its fee from 2% to 1.5%. 

These updates follow the recent final amendments to their 19b-4 forms. Now, the focus shifts to the SEC for their decision. After SEC approval, the ETFs can start trading the next day.

As if there weren’t already enough intrigue, the SEC’s X (formerly Twitter) account posted a false statement approving spot Bitcoin ETFs on January 9. The regulator confirmed that hackers had compromised the account, likely because they hadn’t set up two-factor authentication. The bogus tweet caused about 

 in liquidations, after the price of Bitcoin rose and promptly fell when the truth came out. 

Current Impact on the Crypto Market of Bitcoin Spot ETF Applications

The anticipation surrounding potential approval of Bitcoin spot ETFs in the U.S. 

 a visible impact on the crypto market, notably affecting Bitcoin's price and overall sentiment. A flash-crash triggered by a 

 predicting rejection of all BTC spot ETF applications momentarily pushed BTC below $41,000. However, 

 estimate of a 90% probability of SEC approval by Jan 10, 2024 contributed to Bitcoin's rebound to $45,000. Soon after, BTC price further surged to $47,000 for the first time since April 2022, buoyed by investor optimism surrounding the anticipated approval of U.S. spot BTC ETFs.

According to a recent survey, financial advisors view the spot ETF approval as a significant catalyst, with 88% expressing interest in purchasing Bitcoin once these ETFs receive approval. They're considered preferable to existing futures-based options, and there's a prevailing belief that they’ll draw substantial investment into the world’s primary cryptocurrency. 

Analysts expect the ETFs could attract over 

In addition, there's speculation that attention might shift to 

. Markus Thielen of Matrixport anticipates potential outperformance of ETH over BTC, with decisions on 

 applications potentially arriving around May.

Overall, market sentiment is bullish, given that ETF approval could mark a pivotal moment in mainstream adoption and acknowledgment of digital assets. It's expected to bolster market liquidity and transparency and potentially diminish volatility and manipulation risks. In addition, it’s seen as a catalyst for further innovation in the crypto space, potentially sparking advancements in futures, options contracts, 

On Jan 10, 2024, the SEC finally approved Bitcoin spot ETFs for the first time based on a 3-2 vote. Despite previously having spoken negatively about the risks of crypto, SEC Chair Gary Gensler cast the deciding vote in support of ETF approval. A federal court mandate to review Grayscale’s ETF application may have put the pressure on.

Meanwhile, applications from ARK 21Shares, Invesco/Galaxy, VanEck, WisdomTree, Fidelity

, Valkyrie Investments, BlackRock, Grayscale, Bitwise, Hashdex and Franklin Templeton have all been approved.

What Does Bitcoin Spot ETF Application Approval Mean?

The SEC’s approval of Bitcoin spot ETF applications marks a huge moment for the crypto industry and the financial markets. Such a decision signals that U.S. regulators recognize Bitcoin as an asset class, and that the crypto industry has a shot at meeting their standards of investor protection and market integrity. This recognition could open doors for more innovation and the adoption of crypto assets, making it easier for all sorts of investors to get involved with Bitcoin.

Here are some potential developments following the approval of Bitcoin spot ETFs:

However, there are concerns as well. The introduction of a Bitcoin spot ETF could mean more regulations and middlemen entering the crypto market, which might go against the very principles that have driven crypto's growth — decentralization and freedom from traditional financial controls. Again, being tied to the stock market and regulatory bodies could steer the crypto industry in directions that might not align with its original goals.

In essence, while a Bitcoin spot ETF could bring in resources and connections, there’s also the possibility it may compromise some of the fundamental values that make cryptocurrencies unique. There’s a balancing act between growth and staying true to the principles that sparked the crypto revolution.

The current Bitcoin spot ETF approval makes it easier for institutional and retail investors to get into Bitcoin without the technical and regulatory complexities associated with directly holding the digital asset. As a result, it’s been one of the most anticipated and influential events for the crypto world. This approval could transform how people invest in cryptocurrencies. Yet, it may overshadow other cryptocurrencies and introduce new regulations that challenge crypto's core principles. It would be a big step forward, but it also poses questions about maintaining the essence of decentralization in this evolving landscape.

Bitcoin Spot ETF Approval: What It Means for Crypto Investors

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards