3Commas Weekly Crypto Industry Updates July 19th, 2024

Let's discuss on the latest news in crypto for the third week of July, 2024

BlackRock sets a competitive spot Ethereum ETF fee of 0.25% amid rush of S-1 filings

BlackRock’s iShares Ethereum Trust will open at a competitive temporary fee of 0.12% for the first 12 months or until it gains $2.5B in net assets, when it will revert to the 0.25% fee.

BlackRock explains that there is an annualized fee rate equal to 0.25% of the fund’s net asset value and is payable at least every three months in US dollars, in-kind or a combination of both.

Franklin Templeton’s Franklin Ethereum Exchange-traded Fund (EZET) has emerged as the top provider with the cheapest fees, pegged at 0.19%.

Why does it matter? The war of fees gives consumers additional factors to consider when choosing which ETF they want to invest in. More choice is usually a positive. 

Polygon Labs’s confirms September for the MATIC-POL migration

Polygon labs has confirmed the migration of the MATIC token to the POL token will take place  on September 4, 2024. The POL token was initiated to power Polygon's vast ecosystem on their zero knowledge-based layer 2 network. 

During the early phase, the POL tokens will replace MATIC as the native gas and staking token for Polygon PoS. MATIC holders on Polygon PoS will be automatically upgraded to POL.

However, MATIC holders on Ethereum, Polygon zkEVM, or centralized exchanges will need to either bridge, update smart contracts or use a migration contract. 

Why does it matter? Traders should take the necessary steps to ensure their tokens are in the place they want them to be to take advantage of this move and also to avoid losing funds due to failed token migration. 

BlockFi will start distributions in July through Coinbase

The bankrupt crypto lender BlockFi has announced that it will start its first provisional crypto distributions through Coinbase this month.

Eligible customers will be notified through the email registered with their BlockFi account. However, there is a restriction for non-US customers. These non-US customers, due to regulatory requirements, cannot receive funds at this time.

There is around $10B owed to over 100,000 creditors, including a substantial $1B owed to its three largest creditors. Also, a significant $220M is owed to the now-bankrupt crypto hedge fund Three Arrows Capital.

Why does it matter? The victims of the BlockFi bankruptcy can now anticipate possible future payouts

Greek government to introduce crypto taxes starting in 2025

Currently, there is no tax attached to crypto profits as they are not recognized by the Greek government. 

According to local reports, a special committee will present its findings on cryptocurrencies and digital assets to the Ministry of National Economy and Finance in September.

Then it's expected that by January 2025, a solution will be introduced to include crypto and digital assets into taxation. The report explains that crypto and digital assets will be taxed as capital gains from the sale of securities at a 15% rate. 

Why does it matter? Greek crypto traders can now prepare ahead of time with the necessary crypto tax calculation softwares in order to stay compliant with regulations. 

FTX and CFTC agree to $12.7B settlement, pending court approval

The defunct bankrupt crypto exchange, FTX, and the United States commodities regulator CFTC (Commodity Futures Trading Commission), have agreed to a $12.7B settlement, resolving a 19-month long lawsuit. 

The settlement agreement comprises $8.7B in restitution and $4B in disgorgement. The whole settlement will be paid out to creditors as the regulator didn’t seek a civil monetary penalty. 

A hearing on the settlement is set for August 6th in the Bankruptcy Court at the Delaware district. Currently, creditors have until August 16th to vote on how they would prefer to be paid. Then on October 27, the US Bankruptcy Court Judge John Dorsey will make a final decision.

Why does it matter? The victims of the FTX bankruptcy can now anticipate possible future payouts.

Conclusion: 

There is currently a competitive approach on fees for the spot Ethereum ETF listing to drive higher inflows after launch. Also, bankrupt crypto firms are making plans to refund customers which could result in a drop in prices if a lot of crypto enters the market at the same time. It will largely depend on how the recipients use their newly returned funds.