Tag: beth

Binance to Delist BETH Trading Pairs, Shifts Focus to WBETH: What You Need to Know

Key Takeaways

* Binance announces delisting of BETH trading pairs effective October 11, 2023, at 08:00 (UTC).

* WBETH gains prominence as Binance adds it to Simple Earn Flexible Products and Loans.

* Users advised to modify trading bots and Auto-Invest plans in light of upcoming changes.

Binance, the global cryptocurrency exchange, is making significant changes to its Beacon ETH (BETH) and Wrapped Beacon ETH (WBETH) staking services, according to an official announcement dated August 31, 2023. The move comes as the exchange aims to streamline its staking services and offer better utility to its users.

Trading Pairs and Bots

Starting October 11, 2023, at 08:00 (UTC), Binance will delist and cease trading of BETH trading pairs: BETH/ETH, BETH/USDT, and BETH/BUSD. Concurrently, the exchange will terminate Trading Bot services for these pairs. “All pending trade orders will be automatically removed after trading ceases in each respective trading pair,” the announcement stated.

Binance Simple Earn and Auto-Invest

As of August 14, 2023, WBETH was added to the list of supported assets on Binance Simple Earn Flexible Products. Conversely, BETH will no longer be available for subscription on Simple Earn Flexible Products from October 10, 2023, at 08:00 (UTC). Binance Auto-Invest will also cease offering BETH plan subscriptions starting September 8, 2023, at 02:00 (UTC).

Binance Loans

WBETH was listed as a collateral asset in Binance Loans (Flexible Rate) as of August 14, 2023. However, BETH will be fully delisted as a collateral asset from Binance Loans (Stable and Flexible Rate) on October 9, 2023, at 08:00 (UTC). “All outstanding Binance Loans orders using BETH as collateral will be automatically liquidated at this time,” the announcement warned.

Liquid Swap

Beginning September 8, 2023, at 08:00 (UTC), Liquid Swap will gradually increase the Annual Percentage Rate (APR) on WBETH liquidity pools while lowering APR on BETH liquidity pools.

Implications for Users

The changes signal a strategic shift in Binance’s staking services, with a clear focus on promoting WBETH over BETH. Users are advised to update their trading bots, modify their Auto-Invest plans, and consider WBETH as a collateral asset in Binance Loans to adapt to these changes.About WBETH and Key Differences Between BETH and WBETH

Binance introduced Wrapped Beacon ETH (WBETH) to its ETH Staking service on April 27, 2023. This new liquid staking token initially was designed to work alongside Beacon ETH (BETH), offering users additional flexibility and utility. 

While BETH is confined to trading on the Binance Spot Market, WBETH expands user options by enabling access to DeFi protocols and services beyond the Binance ecosystem, all while still allowing for the accrual of ETH Staking rewards.

ProShares to Launch First Ether ETF and Blended Crypto Funds

Bethesda, Maryland-based ProShares, a prominent player in the crypto-linked ETF market, has announced a significant expansion of its product line. On October 2, 2023, the firm will launch three new exchange-traded funds (ETFs), including the ProShares Ether Strategy ETF (EETH). This will be the first ETF specifically designed to track the performance of ether, the second-largest cryptocurrency by market capitalization. In addition to EETH, ProShares is introducing two blended ETFs that aim to offer investors exposure to both bitcoin and ether, the dominant cryptocurrencies in the market.

ProShares has been a pioneer in the ETF industry since its inception in 2006. With over $60 billion in managed assets, the firm has been a leader in various investment strategies, including crypto, dividend growth, and geared (leveraged and inverse) ETFs.

The launch of these ETFs is a significant milestone in the maturation of the cryptocurrency market. It follows ProShares’ earlier successes, including the launch of BITO in 2021 and BITI, the first U.S. short bitcoin-linked ETF, in 2022. These new ETFs are expected to further legitimize cryptocurrency investments and could potentially attract a new wave of institutional investors.

Michael L. Sapir, CEO of ProShares, highlighted the growing demand for crypto-linked ETFs, citing the success of their bitcoin-linked ETF, BITO. Launched nearly two years ago, BITO has amassed more than $2 billion in net inflows and has become the largest crypto-linked ETF globally. “The launch of EETH is a response to substantial investor demand for a regulated financial product that targets ether,” said Sapir.

ProShares is also diversifying its offerings with the Bitcoin & Ether Equal Weight Strategy ETF (BETE) and the Bitcoin & Ether Market Cap Weight Strategy ETF (BETH). BETE will undergo monthly rebalancing to maintain a 50/50 weighting between bitcoin and ether. In contrast, BETH will adjust its holdings based on the market capitalization of the two cryptocurrencies. “These groundbreaking ETFs offer investors the opportunity to target the performance of the two leading cryptocurrencies through a single transaction and a single ticker,” Sapir elaborated.

One of the key advantages of these new ETFs is their accessibility through traditional brokerage accounts. This eliminates the need for investors to set up a separate crypto custodian, exchange account, or wallet. “Our crypto-linked ETFs are designed to attract investors who are interested in cryptocurrencies but are concerned about the risks associated with custody or the complexities of direct purchases,” Sapir noted.

Unlike many other investment vehicles, these ETFs do not invest directly in cryptocurrencies. Instead, they primarily invest in ether and bitcoin futures. According to ProShares’ research, these futures have historically shown a .99 correlation with their respective cryptocurrencies, offering a near-perfect tracking of the underlying assets.

Exit mobile version