The PENGU Spot ETF is the first NFT-based crypto ETF application, as Canary Capital aims to merge NFTs and DeFi—will the SEC approve this groundbreaking move

January 2024 marked a pivotal point in the crypto industry: the US Securities and Exchange Commission (SEC) approved a bunch of 

 (ETFs) after a decade of resisting it. Later that year, several Ethereum (ETH) Spot ETFs were also approved. These early successes encouraged investment funds focused on digital assets to seek approvals for other 

 (AVAX) and other high-cap cryptos have ended up on the SEC's desk in recent months.

Until Mar 20, 2025, one thing had never occurred: an 

-based crypto ETF application. Such a move was thought to border on impossibility, given how stringently and at length the SEC evaluated ETF applications even for established fungible cryptos. And yet, the Canary Capital investment manager submitted an application to the SEC for approval of the first NFT-focused crypto ETF product, the PENGU Spot ETF, triggering a mini-revolution in the emerging space at the junction of crypto and traditional finance.

If approved, this ETF will be the first of its kind in the industry, based on a mix of 

. Many observers expect Canary Capital to struggle mightily for SEC endorsement of its revolutionary product. Nevertheless, the SEC now has a track record of approving crypto ETFs — which raises hopes for both the altcoin ETFs mentioned above and the PENGU Spot ETF application.

The PENGU Spot ETF is a proposed exchange-traded fund (ETF) product introduced by the Canary Capital investment management firm, and is currently awaiting approval by the SEC. 

 on Mar 20, 2025, making this the first crypto ETF product with an NFT component that’s vying for the approval of America's primary financial regulator. The ETF has been registered in the US state of Delaware.

The Pengu Spot ETF's portfolio is envisioned as consisting primarily of PENGU tokens that will make up anywhere between 80% and 95% of total assets held, with the rest allocated to Pudgy Penguins NFTs. Small portions of Solana's SOL coins and Ethereum's ETH tokens will also be included in order to facilitate transactions and liquidity support, as PENGU tokens are mainly issued on the Solana blockchain, and Pudgy Penguins NFTs are an Ethereum-based collection. 

Since Canary Capital will hold these assets and periodically rebalance the portfolio, gas fee payments on Solana and Ethereum will apply, with fees paid in SOL and ETH, respectively.

Launched in 2021 on Solana, the Pudgy Penguins NFT collection consists of 8,888 items, each depicting a cute penguin with a distinct combination of five different traits. In December 2024, the project introduced a related fungible cryptocurrency, the Ethereum-based PENGU token. As of Apr 2, 2025, PENGU is a smaller-cap asset, ranked 191st in the crypto market, with a total 

 of $319 million. In contrast, Pudgy Penguins are among the leading projects in the NFT space, ranked second among all NFT collections, with a market cap of $155 million.

Canary Capital's application to the SEC is unique in two ways: it’s the first ETF with an NFT component, and it marks the first time ETF approval has been sought for a relatively smaller-cap cryptocurrency, PENGU, which isn’t even among the top 100 crypto assets by market cap. All of the other crypto ETF applications approved by the SEC (or currently vying for approval) are based on high-cap, leading assets that are typically ranked within the top 30.

As of Apr 2, 2025, the SEC has had the application for the PENGU Spot ETF application for just two weeks. The regulator has up to 240 days to review such applications, although historically, the SEC has pondered over crypto ETF applications for years. Now, however, the string of Bitcoin and Ethereum Spot ETF approvals in 2024 raises hopes that newer submissions may be subject to an already established evaluation framework — and thus greenlighted much faster.

At the moment, the SEC is also considering spot ETF applications for several high-cap cryptocurrencies, including Dogecoin, Solana, Polkadot, 

 (XRP). If the regulator decides to approve the applications in batch mode — all or several at once — Canary Capital will have reason to hope that its ETF is included.

However, there's been skepticism regarding the PENGU Spot ETF application, with some analysts believing that its chances might differ from those of the larger, more established altcoin ETFs. This isn't surprising, as a PENGU Spot ETF would be a distinct product, being the first NFT-focused ETF. In addition, NFTs have more limited liquidity than fungible cryptocurrencies. 

NFTs may also be harder to valuate objectively. The prices of fungible cryptos are easily sourced from the crypto market, where supply and demand establish their value. In contrast, the limited liquidity and uniqueness of NFTs makes it much harder to price them efficiently.

Moreover, the PENGU token — which will make up most of the proposed ETF — isn't among the most traded assets in the crypto market. Because PENGU has a modest position in the crypto space (along with its origins as a 

), the SEC could view it with more skepticism than it does the leading altcoins.

Naturally, all these factors are just speculation at this point, and we’ll need to wait on the SEC’s initial comments regarding the first NFT-based ETF under their consideration in order to form a more defined view of the product's prospects for approval.

Current impact of the PENGU Spot ETF application on the crypto market

The news of the PENGU Spot ETF application has so far had no appreciable impact on the price of the PENGU token itself. On the day of the application (Mar 20, 2025), the token was trading at around $0.007. Two weeks later, it's still hovering around the same price. 

On the other hand, there's been a modest increase in the average price of Pudgy Penguins NFTs traded on the market: between March 20 and 28, the average price rose by 16% from around $16,450 to $19,120, though it has since retraced slightly to $17,490 as of Apr 2.

Given the modest price effect, investors are likely still cautious about the chances for the PENGU Spot ETF's approval.

However, if it is approved, the broader impact on the crypto market could be far-reaching, as such a step would signify the SEC's openness to both NFT-based ETFs, and ETFs made up of smaller-cap cryptocurrencies, including meme coins. The number of tokenized asset funds that offer NFT-based products would then be likely to increase significantly, facilitating mainstream NFT adoption within traditional financial markets.

An SEC approval of the PENGU Spot ETF may lead to a flurry of further ETF applications based on NFTs in some form. This could even include the first ETFs composed entirely of NFTs. Other crypto asset types — e.g., 

 (RWAs) — may also become candidates for the SEC’s consideration. Furthermore, in the unlikely event that Canary Capital’s PENGU Spot ETF were to be approved ahead of the altcoin spot ETFs currently in the SEC’s pipeline, it would send a very strong signal that those ETF applications are also a sure bet.

The current PENGU Spot ETF application is a pioneering event that may open up opportunities for NFT ETFs and other crypto ETFs based on partial NFT holdings. Although the SEC approved multiple Bitcoin Spot ETFs in early 2024, few people expected an NFT-based ETF to emerge so soon afterward. Probably even fewer expected a meme coin–based ETF to be taken seriously by the SEC. Unique in so many ways, the PENGU ETF flips the entire concept of traditional ETFs on its head.

Canary Capital's attempt to get approval for an NFT-backed ETF is truly a bold undertaking, though observers said the same thing about 

 just a few years ago. Someone needed to become a trailblazer in this area — and Canary Capital has taken up the noble role without hesitation. Now, all eyes are on the SEC as it prepares to weigh in on a product it has never before encountered.

Intermediate

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PENGU Spot ETF: A bold move for NFT investing — or just hype?

In this article, we break down what to expect from Liberation Day and how it could shape the outlook for equities, the US economy and crypto markets.

 April 2, 2025 as "Liberation Day" — a moment he claims will restore America's trade fairness through sweeping reciprocal tariffs. With few concrete details confirmed, global markets remain on edge. Investors are bracing for the economic fallout of a potential trade war, and crypto traders are watching closely to assess the impact on digital assets. In this article, we break down what to expect from “Liberation Day” and how it could shape the outlook for equities, the US economy and crypto markets.

Since returning to the White House in January 2025, President Trump has prioritized reshaping US trade policy with a renewed focus on tariffs. His administration has already announced 

 on all steel and aluminum imports. Many of these actions take effect this week, coinciding with his so-called Liberation Day.

Trump argues that tariffs are a necessary tool to reduce the US trade deficit and force foreign nations to stop what he calls "economic warfare" against the American worker. Treasury secretary Scott Bessent 

 countries with persistent trade surpluses — dubbed the 

 — as primary targets for reciprocal tariffs. These include China, the EU, Canada and Mexico.

However, critics point to the growing risk of a global trade war, with multiple partners already threatening or initiating retaliatory measures. Goldman Sachs recently 

, citing declining business confidence and mounting economic uncertainty. The tariffs, designed to protect US industries, could instead raise prices and weigh on consumer spending.

What to expect from Trump's ‘Liberation Day’ announcement

Trump is expected to reveal his tariff plans in a Rose Garden press conference on April 2. White House press secretary Karoline Leavitt 

 that the president would impose tariffs on "any country that has treated the American people unfairly" — though no nation-specific exemptions have been confirmed. Trump has promised these reciprocal tariffs will be 

While final details remain under wraps, proposals have included both country-wide and sector-specific tariffs. These could range from uniform, percentage-based levies to targeted charges on industries like pharmaceuticals, semiconductors and autos. Trump's advisers, including Trump trade adviser Peter Navarro and commerce secretary Howard Lutnick, claim the new tariffs could generate over $600 billion annually — though many economists dispute this figure.

Delayed tariffs on Canadian and Mexican imports, 

 in early March, are also set to take effect this week. These include taxes on agricultural products, energy goods and automotive components. Trump has also 

 a 25% tariff on imports from countries that purchase oil or gas from Venezuela.

Given the administration's conflicting signals in recent weeks, there's a wide range of potential outcomes. Whether “Liberation Day” ushers in immediate enforcement, additional delays or future negotiation rounds remains to be seen. For now, uncertainty reigns.

Potential impact on the US economy and global markets

Economists warn that broad-based tariffs could lead to slower US growth, higher consumer prices and widening inequality. Goldman Sachs now 

 Trump's trade policies to reduce annual GDP growth to 1.5% from 2%, while the odds of a recession are being raised from 20% to 35%.

Global equity markets have already shown signs of stress. European and Asian indices dipped ahead of “Liberation Day,” while the S&P 500 and Nasdaq-100 

 in March (respectively). Auto manufacturers, tech firms and retailers could be especially vulnerable if tariffs disrupt global supply chains.

There's also the question of the Federal Reserve's response. With inflation risks rising, policymakers may hold off on anticipated rate cuts, further complicating the economic outlook heading into Q2.

How will ‘Liberation Day’ affect the crypto industry?

Crypto markets have mirrored broader risk sentiment over the past quarter, with investors reducing exposure amid macroeconomic turbulence. As of April 1, the 

 is down 16.9% year-to-date. Bitcoin has fallen 10.48%, Ethereum 44.2% and Solana 33% — despite reaching new highs in January on hopes for pro-crypto policies from the Trump administration.

Investor optimism has since cooled as recession risks, inflation concerns and policy unpredictability drive a risk-off mood. Bitcoin dipped to $81,656 over the weekend, marking its weakest Q1 since 2018. Traders remain cautious ahead of “Liberation Day,” awaiting clarity before opening new positions.

“Liberation Day” could further weigh on crypto prices if market volatility increases and capital rotates out of risk assets. However, some analysts believe any resulting sell-off may offer an opportunity to 

 — especially if Trump follows through on crypto-friendly regulation later this year. For now, though, many eyes are on April 2.

With details still unknown, the crypto market remains in a "wait-and-see" phase. “Liberation Day” could mark a turning point — for better or worse — depending upon the scope and execution of Trump's tariff agenda.

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Trump's 'Liberation Day': What it means for crypto markets

Grayscale has filed to convert its private Digital Large Cap Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, into a publicly available exchange-traded fund (ETF). 

Daily top performer — Compound Finance (COMP)

The S&P 500 rose 0.38% as investors awaited new tariffs amid weak factory data and declining job openings. Gold eased to $3,113 after hitting a record high, driven by profit-taking ahead of Trump's tariff announcement, but remains strong due to safe-haven demand and economic uncertainties. The Coindesk Indices, which tracks the broader crypto market, are up by 1.30%, with Bitcoin and Ether are up 3.10% and 5.19%, respectively, 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 COMP, up 14.3%, following the proposal for the creation of a foundation to ensure consistent leadership and coordination by Compound.

Compound Finance (COMP), launched in September 2018, is a DeFi lending platform that allows users to earn interest on crypto assets. Built on smart contracts, it adjusts interest rates based on supply and demand, connecting lenders and borrowers without intermediaries. In June 2020, Compound decentralized with the launch of COMP and full governance transfer. However, it lacks a core operational pillar. With Compound v4 development and increased community engagement, the need for consistent leadership has grown. To address this, Compound Labs 

 creating a Compound Foundation for structure, clarity, and coordination, similar to other ecosystems like Uniswap.

Check out the latest prices, charts, and data of 

 to convert its private Digital Large Cap Fund, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, into a publicly available exchange-traded fund (ETF). The fund, which currently holds 79.4% Bitcoin and 10.69% Ethereum, has grown by 478.83% since its launch in 2018. The conversion would allow everyday investors to access the crypto market, covering about 75% of the digital asset market cap. If successful, it would eliminate the current barrier that restricts access to accredited investors. The filing is still in progress, with management fees and other details pending.

Yesterday, BTC spot ETF had a total outflow of $157.8 million, with GBTC seeing a loss of $10.1 million and non-GBTC products losing $147.7 million.

 that its airdrop might be approaching, with a claim page now live. Registration for the airdrop runs from April 2 to April 17, and claims are expected to open on April 22. However, nothing has been officially confirmed yet. Stay tuned for updates.

Beginner

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Grayscale files to convert digital large cap fund into publicly accessible crypto ETF

In this guide, we'll dive into how to trade crypto with the Bybit app, a convenient and feature-rich platform. Explore spot and derivatives trading for beginners on the Bybit app.

Welcome to our step-by-step guide on trading using the Bybit app. In this article, we’ll walk you through everything you need to know — from downloading the app and setting up your account to executing spot, margin and derivatives trades. Bybit is a leading cryptocurrency exchange that offers a fully localized and user-friendly mobile experience, making it easy for both beginning and seasoned traders to manage their investments seamlessly.

First, download the Bybit app from the App Store (iOS) or Google Play (Android). Once you’ve installed the app, open it and select your preferred language.

 and register using your email address or phone number. Complete the verification process by submitting your mainland Chinese ID or passport as required. This step is crucial to ensure your account is secure, and to unlock higher withdrawal limits.

After verifying your identity, head over to the 

 tab to fund your account. You can directly deposit cryptocurrencies like BTC or USDT. Our 

 (UTA) streamlines fund management, allowing you to trade seamlessly across different markets without the hassle of multiple wallets.

Spot trading with Bybit lets you buy or sell cryptocurrencies at current market prices with immediate settlement.

To begin, log in to the app and tap on the 

Choose your desired trading pair, such as BTC/USDC or ETH/USDT, from the list.

 lets you specify a price at which you want to buy or sell. 

Enter the amount you wish to trade, review the details and confirm your order.

Once your order is executed, monitor its status in the 

Bybit has an intuitive interface that displays real-time updates, so you can track your trades anytime with ease. 

How to execute a spot margin trade with the Bybit app

For traders looking to leverage their positions, Bybit offers a spot margin trading feature that allows you to borrow funds to increase your buying power. Start by logging into your account and tapping on 

Choose a trading pair, such as ETH/USDC, which supports margin trading with leverage options of up to 10x. 

Once your trading pair is selected, you’ll need to select the margin amount (e.g., 

 at which you want your limit order to execute.

You’ll also see several other important metrics, such as 

Enter the amount you wish to trade, and then carefully review all of the details.

After confirming your order, your margin trade will be executed. You can track your position in the 

 tab, where you can also set up stop-loss or take-profit orders to manage risk. 

How to trade derivatives with the Bybit app

Bybit also offers derivatives trading, which allows you to speculate on the price movements of cryptocurrencies without actually owning the underlying assets. Derivatives include Futures and Perpetual contracts, which can be traded with leverage, sometimes up to 100x.

To start, log in to your account and tap on 

Set your desired leverage (e.g., 50x) and choose between 

 margin modes, based on your risk preference.

 (if using limit or conditional orders) and 

Once you’re satisfied with your parameters, confirm your order and your position will appear in the 

Trading with the Bybit app offers numerous advantages that make managing digital assets both efficient and secure. The platform’s user-friendly design, high-speed execution and comprehensive risk management tools cater to traders of all levels. Our Unified Trading Account (UTA) streamlines fund management by consolidating assets for spot, margin and derivatives trading under one account, which reduces operational complexity and enhances overall efficiency. This streamlined approach lets you focus on strategy rather than logistics.

Additionally, Bybit’s state-of-the-art security measures — such as multi-factor authentication, regular independent audits and cold storage of assets — ensure that your transactions are conducted safely and transparently. With an interface designed to minimize distractions and provide real-time data, you can quickly monitor market movements and adjust positions. 

Our commitment to a secure and reliable trading experience is evident in our continuous improvements and proactive customer support. These features empower you to make informed trading decisions, fostering confidence in your ability to navigate the dynamic crypto market.

Bybit delivers a secure, robust and intuitive mobile platform that simplifies cryptocurrency trading for everyone. In this guide, we’ve explored how to set up an account, fund it and execute various types of trades — spot, margin and derivatives — using a fully localized and user-friendly interface. Our Unified Trading Account and comprehensive risk management tools ensure a smooth trading experience so you can focus on growing your investments.

Looking ahead, Bybit remains dedicated to innovation and excellence in the crypto industry. We continually refine our platform, based on user feedback and market trends, ensuring that you have access to the latest tools and features. Our commitment to transparency and security underpins everything we do as we build trust and empower traders. 

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How to trade with the Bybit app

Altcoins

Crypto

Wrapped tokens are essentially 'wrapped' versions of cryptocurrencies, but what are they and how do they work? All is revealed here.

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Whenever you check out the crypto market, you encounter tokens that have the word “wrapped” in front of them, such as Wrapped Bitcoin (WBTC) or 

As their name suggests, such tokens are called 

Wrapped tokens are cryptocurrencies that are implemented in a different blockchain. The reason that wrapped tokens exist is for 

, which is the ability of a coin to work in a blockchain that normally does not support it.

In this article, we will elaborate on what wrapped tokens are and how they work.

Wrapped tokens are essentially “wrapped” cryptocurrencies made for the purpose of working in other blockchains. Wrapped Bitcoin is a wrapped version of Bitcoin that will work on other blockchains. Similarly Wrapped Ether is a wrapped version of Ether that works on other blockchains.

, work according to the same logic. Tether is considered a virtual version of USD with the ability to work in a decentralized system. Wrapped tokens work on the same principle. Each type of blockchain differs from another. Some cryptocurrencies might not work in a specific blockchain. Hence, they go through the process of “wrapping,” in order to be utilized in that specific 

, which means that it identically represents another token, as well as a protocol for issuing such tokens. In fact, ERC-20 stands for “Ethereum Request for Comment.” 

, to allow users to turn their ETH into Wrapped ETH (WETH) – in order to use ETH as ERC-20 tokens and increase function in its blockchain.  

One of the main reasons that Wrapped Tokens were developed was that some decentralized applications (

) on the Ethereum network were not compliant with Ether. Thus, wrapping tokens allowed people to convert their ETH into ERC-20 tokens.

In order for a token to be wrapped, it needs to have a 

, which guarantees the same value of the original token as its wrapped version. This custodian could be a set of codes, such as a 

, a multisignature wallet (multisig wallet), or a 

Smart contracts are sets of codes that are self-executing, and which run in a blockchain to regulate everything that happens in it, including services and transactions.

DAO stands for Decentralized Autonomous Organization, and it works through smart contracts to execute commands on the blockchain.

Multisig wallet (multisignature wallet) is a digital signature signed by different users of a blockchain which ensures security for their funds.

The custodian holds the original token and “wraps” it through a process which is known as 

After the token is minted into a wrapped token, it is then sent to the blockchain that it wants to operate. So, one token will turn into one wrapped token, five tokens will turn into five wrapped tokens, and so on.

The wrapped token can also be “unwrapped” and turned into its original form. This is also done by a custodian through a process which is known as 

After the wrapped token is burned, it is converted to its original form and sent to its original blockchain. The token and the wrapped token have equivalent prices during the processes of minting and burning.

When a token is wrapped, it can access other blockchains and function normally (fully supported) on them.

Bitcoin itself cannot run in the Ethereum blockchain. Actually, Ethereum’s blockchain offers many more services than Bitcoin’s blockchain. Because of this, some people mint their Bitcoins (BTC) and use their newly Wrapped Bitcoins (WBTC) on the Ethereum network to operate every service that the latter offers. These services include running decentralized applications (dApps) in the 

Wrapped Bitcoin was introduced in 2019. It was founded collectively by three organizations: BitGo, Kyber Network, and Ren. 

, 141,322 BTC were minted and running in the Ethereum network by the end of 2020.

But is it possible to directly buy Wrapped Bitcoins without having to buy Bitcoins first, and then mint them into Wrapped Bitcoins?

The answer is yes. You can directly buy Wrapped Bitcoins using 

, which is a crypto wallet/software that interacts with the Ethereum blockchain.

Such crypto wallets are used for protecting your private keys, funds and other information, as well as a way of exchanging your tokens in a decentralized manner.

Wrapped Bitcoin (WBTC) price and its ratio to Bitcoin (BTC). Source: Coinmarketcap.com

As seen in the above graph, the price of Wrapped Bitcoin [WBTC, in green, with the relative price of Bitcoin (BTC) in yellow] has been fairly constant over the last two years.

Besides Wrapped ETH (WETH) and Wrapped Bitcoin (WBTC), other important wrapped tokens are worth mentioning. Wrapped tokens on Ethereum need to be compliant with ERC-20. Some of the other wrapped tokens on Ethereum are as follows:

Basic Attention Token price (2017–2021). Source: Coinmarketcap.com

OMG Network price (2018–2021). Source: Coinmarketcap.com

However, Ethereum is not the only network that supports wrapped tokens. Binance Smart Chain is another blockchain on which wrapped tokens such as WBTC and WETH can run. 

These wrapped tokens on the Binance Smart Chain need to be compliant with BEP-20 tokens. The aforementioned tokens can be wrapped through the

Binance Bridge, which is one of the safest ways to mint new wrapped tokens and launch them in the Binance Smart Chain. Wrapped tokens on the Binance Smart Chain can be used for either cryptocurrency transactions or for yield farming applications.

Be aware that the process of wrapping (minting) and unwrapping (burning) tokens is not free. Some gas fees need to be paid in order to successfully wrap or unwrap tokens. Fortunately, wrapping and unwrapping fees on the Binance Smart Chain are lower than on other blockchains that support wrapped tokens. 

Some of the most important wrapped tokens that can run in the Binance Smart Chain are WBTC, WETH, Wrapped Ripple (WXRP), and Wrapped Polkadot (WDOT).

As with every other token, wrapped tokens have many benefits, but also some disadvantages. For you to understand clearly the importance of wrapped tokens as well as their flaws, here are their pros and cons.

: The biggest benefit that wrapped tokens offer is interoperability. Unlike in the past, you can now use your Bitcoins on the Ethereum network by wrapping them. Not only can you still conduct transactions through wrapped tokens, but you can also use them for different services, such as running and launching DApps, or running 

: A huge benefit that comes with the utilization of wrapped tokens is the increase in liquidity. Capital efficiency can be increased together with the liquidity of an asset, whether it is centralized (fiat currencies) or decentralized (cryptocurrencies). 

: Another big advantage that wrapped tokens offer their owners is faster transaction services. For instance, buying or selling Bitcoin in its blockchain can take up a considerable amount of time. However, using Wrapped Bitcoin in the Ethereum network is much quicker. Keep in mind, however, that time is a valuable asset in the crypto market, due to the high volatility of cryptocurrencies.

: Wrapping your tokens can actually increase the security of your funds because you have more control over private keys. Additionally, custodians (DAO, smart contracts, or multisig wallet) focus on secure exchanges.

: Last but not least, lower transaction fees are another way that you can benefit from using wrapped tokens.

Wrapped tokens are continually improving. They still rely on a custodian to be able to be minted (wrap) or burned (unwrap). If the custodian is somehow flawed, the wrapping or unwrapping process will be flawed as well.

The whole purpose of cryptocurrencies is to operate in a decentralized system. However, since wrapped tokens are issued by a custodian, they are prone to centralization. According to

, even the founder of Ethereum, Vitalik Buterin, has acknowledged the fact that wrapped tokens are “sensitive” to centralization because they’re made in a centralized manner.

“I’m worried about the trust models of some of these tokens. It would be sad if there ends up being $5b of BTC on Ethereum and the keys are held by a single institution,

The problem is that when wrapped tokens are minted, it’s not done directly in the desired blockchain but rather through a central program.

Another minor disadvantage that comes with wrapped tokens is the minting costs. Wrapping and unwrapping tokens require gas fees, which can then result in 

Nevertheless, the benefits of wrapped tokens outweigh the negative features. Moreover, in the future, it is expected that these minor disadvantages will be removed. Perhaps a custodian (DAO, smart contracts, or multisig wallet) may not be needed in the future to wrap or unwrap tokens.

So, is investing in wrapped tokens a wise idea?

Overall, wrapped tokens are becoming progressively more important because of the increasing need to use other cryptocurrencies in a specific blockchain. Therefore, investing in wrapped tokens can be very profitable in the long run, especially with the likes of WBTC.

Wrapped tokens are similar to normal tokens. In fact, they are bought and sold for the equivalent price. Thus, if the price of a token rises, the price of the wrapped token may also rise.

When it comes to the price of WBTC, it depends on the price of BTC itself. Credible prediction sites estimate a relatively large increase for both BTC and BTC.

, the price of Bitcoin could go as high as $89,000 in 2021 and reach six figures by 2022, at around $103,000. This could be followed by a steady increase throughout the decade. It may eventually reach a soaring high of around $264,000 by the year 2028. Since WBTC is the same token (built for a different blockchain), it will also follow the same path as BTC at equivalent rates. To illustrate,

 predicts that the price of WBTC may reach around $258,000 when BTC reaches its high point in 2028.

Other wrapped tokens are likely to follow the same trajectory. Of course, not every cryptocurrency can go as high as Wrapped Bitcoin, since Bitcoin is the world’s leading cryptocurrency. But other cryptocurrencies are also predicted to increase relatively in price.

Ultimately, wrapped tokens have made cryptocurrencies much more efficient and useful. 

DApps benefit from the variety of wrapped tokens on blockchains. Thus, they have even more potential than before, and can positively influence the crypto world if they keep growing at their current rate. 

Ever since the utilization of wrapped tokens, they have been used to increase the efficiency of cryptocurrencies.

What are Wrapped Tokens — and How do They Work?

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