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We have an important update that will impact Coinbase Prime users.
In the near future, Coinbase Prime will change how it treats ETH and ETH2 staking transactions. We're here to help you navigate this change.
What's Happening
ETH2 is merging with staked Ethereum (ETH) on Coinbase Prime.
When this happens on the Prime platform, your separate "ETH" and "ETH2" assets will be combined into one – denoted by the "ETH" currency symbol.
What to Expect in Bitwave
- Because of this retroactive update from Coinbase, all ETH2 transactions will be re-written as ETH transactions within the Bitwave platform. This platform update will ensure that your transaction data and crypto balances sync properly after the Coinbase merge action.
- IMPORTANT: Your gain-loss reports and inventory views will be impacted if you are currently tracking ETH and ETH2 as separate assets in Bitwave.
- ETH2 that is wrapped into ETH will not be impacted. After this change, most picking strategies will be impacted as the result of two distinct inventories combining into one.
- Staking and unstaking ETH will no longer change the ETH transaction balance in Bitwave. (Previously, staking would impact both ETH and ETH2 balances.)
- Reward transactions will not change, either. This activity will still increase the overall ETH balance.
Our Recommendation
Once these changes are live, Bitwave customers may need to review their balances for staked ETH and ETH2 transactions.
Bitwave allows users to leverage inventory groups and manual wallets to maintain separate balances if necessary.
If you'd like a demo of these capabilities or would like to review your account with a member of the Bitwave customer success team, just reach out to us. We'd love to help you.
Our Commitment
Bitwave works closely with data source providers – including Coinbase – to help you prepare for these changes before they occur. We're dedicated to delivering the highest level of quality for our customers.
With Bitwave, you're always ahead of the curve and ready for what's next in this fast-moving market. 🌊
Disclaimer: The information provided in this blog post is for general informational purposes only and should not be construed as tax, accounting, or financial advice. The content is not intended to address the specific needs of any individual or organization, and readers are encouraged to consult with a qualified tax, accounting, or financial professional before making any decisions based on the information provided. The author and the publisher of this blog post disclaim any liability, loss, or risk incurred as a consequence, directly or indirectly, of the use or application of any of the contents herein.
