• 14/08/2024

With the approval of Ethereum ETFs looming, it’s crucial to understand what they are and their implications for the crypto market. This article delves into the concept of Ethereum ETFs, their potential benefits, and the current regulatory landscape.

What is an Ethereum ETF? An Ethereum ETF (Exchange Traded Fund) tracks the price of Ether (ETH), the native cryptocurrency of the Ethereum network. ETFs are financial instruments traded on stock exchanges, making it easier for traditional investors to gain exposure to Ethereum without directly buying or storing the cryptocurrency.

Significance of Ethereum ETFs:

  1. Accessibility: Ethereum ETFs make it easier for traditional investors to access and invest in Ether through conventional brokerage accounts.
  2. Regulatory Clarity: The approval of such ETFs signifies a maturing regulatory environment, providing more legitimacy to cryptocurrencies.
  3. Institutional Investment: Large financial institutions can invest in Ethereum through ETFs, potentially increasing market liquidity and stability.

Current Regulatory Landscape: In 2024, the SEC is evaluating multiple applications for Ethereum ETFs. While Bitcoin ETFs have already seen approval, Ethereum ETFs face scrutiny due to regulatory uncertainties surrounding digital assets. High-profile companies like BlackRock have applied for these ETFs, indicating strong institutional interest.

Advantages and Disadvantages:

Advantages:

  1. Professional Custody: ETFs are managed by financial institutions, ensuring secure storage and management of assets.
  2. Ease of Investment: Investors can buy and sell ETF shares like regular stocks, simplifying the investment process.

Disadvantages:

  1. Management Fees: ETFs often come with management fees, which can reduce overall returns.
  2. No Direct Access to ETH: Investors in ETFs don’t own the underlying Ether and can’t use it within the Ethereum network.

Future Prospects: The approval of Ethereum ETFs could lead to increased adoption and integration of blockchain technology in traditional finance. It may also drive further innovation within the Ethereum ecosystem, especially in areas like DeFi (Decentralized Finance) and tokenization.

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PERIODIC BURNING

A percentage of transaction fees from manual arbitration operations, in addition to the full amounts from License purchases for operations in the automatic arbitration system, will be used to burn Clash Hub Coin tokens. This will accelerate burning, decrease supply, and increase scarcity of the token.

100% of tokens converted to USDT during withdrawals from the staking system, arbitrage system and flash loans will be burned, promoting a continuous decrease in the total supply.

OBJECTIVE OF BURNING

Reduce 90% of the total supply over 1 year through periodic burning and conversions of staking rewards and token affiliate system into USDT. 90% of the supply will be burned, equivalent to 900 million tokens at a price of $0.01, corresponding to 9 million dollars in transaction volume. Then the current model of the affiliate system will conclude and the token will be launched in the public sale phase after the full burning of 90% of the supply.

Total supply of tokens will be burned and released on DEX`s for public sale at a price of $0.02, doubling the capital of Clash Hub Coin Token holders.