Daily News | BlackRock Ethereum ETF Set 0.25% Fee; The Blockchain Identity Platform Fractal ID Suffered a Data Breach; Aethir Launched a $50M Community Reward Program

2024-07-18, 03:31

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## Crypto Daily Digest: Fractal ID, a blockchain identity platform, suffered a data breach; BlackRock Ethereum ETF set a fee of 0.25%; Aethir launched $50 million community reward program
First, let's examine the trading activity of the <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETF. According to Farside Investor data, on July 17, Grayscale Bitcoin Spot ETF (GBTC) had a fund outflow of $53.9 million. Meanwhile, the Fidelity Bitcoin Spot ETF (FBTC) received an inflow of $2.8 million, while the Bitwise Bitcoin Spot ETF (BITB) received an outflow of $6 million.

**BlackRock has set a fee of 0.25% in the latest revised version, and companies are preparing to launch spot <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> ETFs**

Asset management giant BlackRock has set the fee for its spot Ethereum product at 0.25%, and companies have submitted revised forms before the expected launch of the product next week. According to the revised S-1 registration statement submitted on Wednesday, BlackRock stated that it can "waive all or part" of the fees for a certain period of time and reduce the fees for the first $2.5 billion of assets within one year after listing to 0.12%.

Other companies have also announced their respective fees: 21Shares has set a fee of 0.21%, which will be waived within six months from the date of stock listing or during the first $500 million period; The fee for Bitwise is 0.20%; Grayscale's fee is 2.5%, much higher than other issuers. The cost of Invesco Galaxy is 0.25%, VanEck is 0.20%, and Franklin Templeton is 0.19%.

Multiple sources have reported that spot Ethereum ETFs may begin trading on July 23. Bloomberg ETF senior analyst Eric Balchunas stated that the SEC has responded to the issuer's request to return the final S-1 documents (including fees) on Wednesday and take effect after Monday's closing, in order to facilitate the issuance on Tuesday, July 23rd.

**Blockchain identity platform Fractal ID experienced data breach**

On July 17, the blockchain identity platform Fractal ID announced that it suffered a data breach on July 14th. Fractal's partners include payment system <a href="/price/gnosis-gno" target="_blank" class="blog_inner_link">Gnosis</a> Pay, decentralized financial application Acala, personality verification project <a href="/price/polygon-matic" target="_blank" class="blog_inner_link">Polygon</a> ID, social media platform Lukso, and other Web3 applications. Fractal did not specify in its statement which partners were affected by this intrusion.

Fractal stated that this vulnerability only impacted "about 0.5% of the Fractal ID user group". According to the notice, "a third party outside of the Fractal ID unauthorized accessed the operator's account and ran an API _script_ that began accessing the user's personal data at 5:14 AM UTC time." After the team noticed this vulnerability, they "took action to log the attacker out of the system before 7:29 AM UTC time." Therefore, the attack appears to have occurred within 2 hours and 14 minutes.

The notice states that only a limited amount of account data is stored in the accounts of this specific operator, accounting for only 0.5% of the total user base of Fractal. Possible leaked data includes names, email addresses, wallet addresses, phone numbers, physical addresses, images of uploaded files, and pictures. Fractal claims that this intrusion did not affect the customer's system or product, as the intrusion "only occurred in the [Fractal] environment". Even so, affected users should be wary of unsolicited communications that request more personal information.

**Aethir launched $50 million community reward program, suspended token swap with io.net**

According to official sources, Aethir has announced the suspension of its previously agreed $50 million token exchange program with io.net. The Aethir Foundation has decided to launch a community reward program, distributing $50 million worth of ATH tokens initially allocated for exchange to loyal and active participants of the Aethir network, in recognition of the valuable contributions of the Aethir community and further incentivizing people to continue participating in the Aethir ecosystem.

The allocation of this plan is as follows:

Reward for Checker Node License holders: ATH tokens worth $20 million will be distributed to Checker Node License holders. Everyone is eligible to receive the minimum number of ATHs. For holders who have invested at least 2,500 ATH in each Checker License and those who have been investing since TGE, additional bonuses will be awarded. Aethir will take daily snapshots to determine eligibility, with the final snapshot taking place on July 23, 2024.

ATH-AI staking pool revenue increase: The remaining $30 million worth of ATH tokens will be allocated to the ATH-AI staking pool within 24 weeks to increase revenue and support the development of artificial intelligence applications on the Aethir network.

Aethir stated that the $50 million community reward program is an important milestone towards the decentralized future of cloud computing. By readjusting the resources originally used for the io.net token exchange, the growth and development of the Aethir ecosystem can be accelerated.

## Market Trends
BTC briefly touched $66,000 yesterday and fell back, currently consolidating around $64,500. The spot ETF continues to inflow $57 million (excluding IBTC data for now).

ETH fell after breaking through $3,500 and is currently adjusting around $3,420.

Altcoins followed the general market downturn.
### Data Indicators:
Today, the AHR999 index is at 0.85, indicating that the market has crossed the bottom zone.

The Fear & Greed Index is at 61, indicating a slight easing of market greed compared to yesterday.
### Macroeconomics
The three major indexes of the US stock market have fluctuated, with the Nasdaq plummeting by 2.77%, mainly due to the sharp decline of constituent stocks Apple and Nvidia. Federal Reserve's Williams hinted that the Fed is about to cut interest rates, but is not yet ready.
### Market Hotspots:
**Ethereum Staking Sector:**
LDO, RPL, ETHFI and other rebounds. SEC commissioners suggest reconsidering Ethereum ETFs that include "staking".

**GameFi Sector:**
BNX, ALICE, DAR and others have surged. Impacted by the BNX destruction proposal, BNX has risen nearly 200% this month. The GameFi sector has performed average in this round of market, while other tokens have shown signs of decline.

**Meme Sector:**
PEIPEI and NUB continue to rise, and the fully circulated Meme coin has performed outstandingly under the strong control of market makers. In addition, the <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> on-chain cat Meme coin MANEKI officially announced that the first lottery card game will be launched at 22:00 tonight, with prizes including Cybertruck, Apple computers, drones, and more. At present, there is no obvious price response on the market.
### Summary
The current market is in an overall adjustment stage, with BTC and ETH consolidating at high levels and Altcoins generally experiencing a pullback. Despite the uncertainty in the macroeconomic environment, the Ethereum staking sector and GameFi sector have shown activity driven by specific news. The Meme sector continues to strengthen under the conditions of full circulation and high control. Investors should focus on macroeconomic trends and changes in market sentiment in order to adjust their investment strategies in a timely manner.

## Macro: Trade tensions intensify, US stocks hit, Asian stock markets fall, Japanese yen rises
On July 17, the S&P 500 index and Nasdaq index fell sharply on Wednesday, as microchip stocks plummeted amid the potential escalation of the trade conflict between the United States and China, exacerbating the continued outflow of large technology stocks. The Biden administration is considering imposing severe trade restrictions on China, causing microchip stocks to fall 6.8%, marking the largest single day decline in the Philadelphia Stock Exchange Semiconductor Index since March 2020.

Index performance: The Dow Jones Industrial Average rose 0.59%; The S&P 500 index fell by 1.39%; The Nasdaq index fell 2.77%.

The momentum stocks of the "Big Seven" led by Nvidia, Apple, etc. experienced a pullback, dragging down the Nasdaq index by 2.8% and the benchmark S&P 500 index by 1.4%. The Dow Jones Industrial Average has been lagging behind the other two indices this year, but in recent days it has maintained a slight increase and set a new closing record high for the third consecutive time.

The small cap Russell 2000 Index surged 11.5% in the previous five trading days, ending its longest upward trend in over four years, as investors regained interest in more undervalued stocks and sectors in the stock market.

The Chicago Board Options Exchange volatility index reached its highest level in six weeks, indicating that investors' anxiety is intensifying.

Another report shows that the growth rate of industrial production in June was twice as expected. This data is consistent with recent reports indicating that despite signs of weakness in the US economy, its resilience will help the Federal Reserve lower inflation to its target of 2% without causing the economy to shrink.

The Beige Book released by the Federal Reserve on Wednesday showed that US economic activity expanded moderately from late May to early July, but there are signs that the job market continues to be weak.

According to the Chicago Mercantile Exchange's FedWatch tool, financial markets have expected a 93.5% chance that the Federal Reserve will begin cutting interest rates in September.

**Trade tensions intensify, Asian stock markets fall, Japanese yen rises**

On July 18, Asian stock markets fell on Thursday, led by chip stocks, as investors were concerned about the prospect of escalating trade tensions between the United States and China, while the Japanese yen surged to a six week high after Tokyo's alleged intervention last week.

Due to the statements of Federal Reserve officials increasing the possibility of a rate cut in September, the exchange rate of the US dollar against a basket of currencies is hovering around its lowest level in four months, and gold prices remain near historical highs.

The MSCI Asia Pacific stock index fell 0.57%; South Korean stocks dominated by technology stocks fell nearly 1%; The Nikkei index in Japan fell by 2%. Due to investors waiting for news of the leadership meeting, the Chinese stock market also experienced a decline, with the Shanghai Composite Index falling 0.4% and the blue chip CSI 300 Index falling 0.5%.

In terms of the currency market, the US dollar is facing difficulties, with the euro/dollar exchange rate stabilizing at $1.09385, close to the four month high hit on Wednesday. The latest exchange rate of the pound against the US dollar is $1.30065, close to the one-year high reached in the previous trading day.

The commodity market saw a slight increase in oil prices on Thursday, driven by the unexpected weekly decline in US crude oil inventories. Brent crude oil futures rose 0.2% to $85.21 per barrel, while US West Texas Intermediate (WTI) futures rose 0.4% to $83.16 per barrel.

The gold price rose 0.18% to $2,462 per ounce, slightly lower than Wednesday's historic high of $2,483.60.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>