☕EIP-1559is rolling out today
Today will occur the London hard fork which integrates 5 protocols that are expected to improve Ethereum's network. The most interesting of them is EIP-1559 which will double the capacity of each block and to make some changes related to the fees. Currently, the users are competing to pay higher fees for their transactions to be prioritized. Now the auction-based fee structure will be replaced with an automated base fee. Even though users can “tip” the miner and the transaction to be prioritized. The EIP-1559 will reduce the supply of Ethereum - currently, the fees go to the miners. The new upgrade will burn the fee and will reduce the supply of the cryptocurrency which will make ETH a deflationary asset.
☕Grayscale to hire Head of Global ETFs
The company hired the former State Street executive David LaValle to lead an ETF team. The news is significant because it shows that Grayscale is expecting the SEC to approve the first crypto ETF in the US.
One of the most impressive funds by the company is the Bitcoin Trust. It allows institutional clients to buy Bitcoin shares that are backed with the cryptocurrency.
For a long time the stocks were trading on a premium and the investments were profitable. From February till now Grayscale Bitcoin Trust is trading on a discount meaning that the shareholders are losing money.
At that time Grayscale mentioned that it would like to convert the Trust to an ETF and added that it has the same plans for its Ethereum Trust.
LaValle said that Grayscale has much of the necessary technical and staffing infrastructure to convert its Trusts to an ETF. I will not be surprised if the company is the first to receive an approval from the SEC. It looks like the company has the infrastructure, clients, and experience to do so.
☕British citizens “very interested” in crypto loans
A recent survey, sponsored by Coinbase, found that 41% of the British citizens pointed to long-term investment as their motivation to come into the crypto space. 39% said that they may use a virtual currency for cross-border payments and more than a half - 51% - stated that they would use crypto as a guarantee to get a loan.