BitOffer: Bitcoins in 2020? I Prefer to Earn More on ETF!

[CastyLamer]

Since the cryptocurrency market improved and developed, an increasing number of institutions and portfolios start enhancing the proportion of cryptocurrency, especially bitcoin. So, how should we improve our asset management in the upcoming 2020?
As we all know, the 3rd halving coming, the balance of the supply and demand will be broken again like the last 2 halvings. After the last 2 halvings of bitcoins, the bitcoin trading market became bullish, which led the bitcoin price to rise by more than 10 times. When we are expecting the upcoming bull market in 2020, most of the investors already started continually buying bitcoins.
Why do I rather buy ETF than bitcoin?
First, let’s theoretically do a calculation of the bitcoin price in 2020:
1. The reduced block rewards because of the 3rd halving will lead the bitcoin price to rise by twice.
2. The upgrades of the miner machine will lead the bitcoin price to rise twice.
To sum up, after the halving, the bitcoin price is predicted to boost by at least 4 times. If we take the current bitcoin price: $7,500 as the standard, the bitcoin price would be expected to increase to $30,000.
When the bitcoin price does rise to $30,000, you would be able to gain 3X profits if you buy bitcoins and hold it. However, if you buy BTC Leveraged ETF launched by BitOffer which uses an automatic position adjustment mechanism, the profit will reach 17 times in this situation. To investors who prefer the long-term investment of bitcoins, BTC Leveraged ETF will be a gorgeous choice.
What are the differences in the returns between 3X leveraged ETF and 3X futures trading?
In the short term, or when the change is small, their return will remain the same unless the situation in the long term.
For example, when the bitcoin price rises by 300%, the return of futures trading is 900%. But due to the automatic position adjustment mechanism affected on BTC Leveraged ETF, the return of BTC3X could reach 1700%. Another example, when the bitcoin price drops by 50%, the futures contracts of Open Long 3X BTC are already forced into liquidation, but BTC3X still owns value and be waiting for the next trend to rise.
Recently, BitOffer, a professional BTC derivatives trading platform, officially announced the launch of BTC Leveraged ETF, which can be held for long-term or trade in the short term. Different types of BTC Leveraged ETF have the same features of “Buying Long & Short”, “No Marins” and “No Liquidation”. This product will be managed by the professional financial team. With the automatic positions adjusting mechanism, even the drastic drops happen on the bitcoin price, BTC Leveraged ETF will never be at risk because of its features of “Highly Profitable but Low-risky”.
What is BTC Leveraged ETF?
ETF (Exchange Traded Fund), is highly accepted as a financial derivative in traditional finance. BTC Leveraged ETF is fixedly leveraged because of its correspondence to a specific amount of futures contract positions.
BitOffer will publish indexes of BTC3X, BTCR, BTC3R as the net value and the price of the respective ETF. The price and the net value index may not remain exactly the same, but our purchase & redemption mechanism will prevent the price from being too far away from the net value index:
A. BTC3X(Bitcoin 3X Leveraged ETF): Its direction will remain the same as bitcoin, but its daily change will be 3 times to bitcoin. For example, when the bitcoin price rises by 5%, BTC3X is expected to rise by about 15%.
B. BTCR(Bitcoin 1X Leveraged Inverse ETF): Its direction will perform the opposite direction of bitcoin with the same change. For example, when the bitcoin price drops by 5%, BTCR is expected to rise by about 5%.
C. BTC3R(Bitcoin 3X Leveraged Inverse ETF): Its direction will perform the opposite direction of bitcoin, but its daily change will be 3 times to bitcoin. For example, when the bitcoin price drops by 5%, BTC3R is expected to rise by about 15%.
For the investors who prefer to invest bitcoins on the spot trading market, BTC Leveraged ETF has a significant advantage that with the same trading pattern which allows investors to buy or sell anytime and anywhere, but its profit is triple more than holding bitcoins.