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Date set for Ethereum’s Shanghai Public Testnet: here’s the latest details

By Darius McQuaid

Edited by Charlie Mellor

12:23, 11 January 2023

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In this article:
BTC/USD
Bitcoin / USD
23129.25 USD
367.5 +1.620%
ETH/USD
Ethereum / USD
1588.78 USD
30.38 +1.950%

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The logo of Ethereum (ETH) is seen displayed on a mobile phone screen
Part of this upgrade is to allow blockchain validators to withdraw their 32 ether from staking contracts – Photo: Getty Images

The Ethereum (ETH) Shanghai/Capella upgrade is set to arrive in March 2023 with the Shanghai Public Testnet expected to begin in February.

This is according to numerous news outlets with regards to the Shanghai upgrade, while U.Today reported the Shanghai Public Testnet is coming next month. 

An aspect of this upgrade is to allow blockchain validators to withdraw their 32 ether from staking contracts.

Currently those who stake ETH and are a validator cannot withdraw their stake. The Shanghai upgrade will introduce a code that will allow Ethereum Network validators to withdraw this staked ether.

The upgrade was originally scheduled for launch in September 2023 at the latest. It will also allow withdrawals of staked ether in the Beacon Chain since December 2020.

Twitter profile CroissantEth said on 2 January: “Most recently liquid staking derivatives have had a nice uptrend. This is thanks to the Shanghai upgrade expected in a few months which will enable withdrawals of staked ETH. As withdrawals are enabled, many believe more users will stake their ETH.”

As of 11:47 GMT on 11 January, ETH was trading at $1,335, up by 0.42% compared with the previous day, according to CoinMarketCap.  

ETH to USD 

BTC/USD

23,129.25 Price
+1.620% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 60.00

ETH/USD

1,588.78 Price
+1.950% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 5.00

LUNC/USD

0.00 Price
+5.090% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee -0.0500%
Overnight fee time 22:00 (UTC)
Spread 0.00000713

DOGE/USD

0.10 Price
+9.480% 1D Chg, %
Long position overnight fee -0.0500%
Short position overnight fee 0.0140%
Overnight fee time 22:00 (UTC)
Spread 0.0012089

Has The Merge made ETH a security?

The Merge – the move from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism which took place in September 2022 – may now mean that ETH falls under the category of a security, according to the chair of the US Securities and Exchange Commission (SEC) Gary Gensler.

Gensler, speaking on 15 September 2022, said cryptocurrencies and intermediaries that allow holders to “stake” their coins might pass the Howey test, which is a way to assess if a transaction qualifies as an “investment contract” and is therefore considered a security. He said:

“From the coin’s perspective… that’s another indicia that under the Howey test, the investing public is anticipating profits based on the efforts of others.”

However, at the Financial Times Crypto and Digital Assets Summit: Winter Edition on Monday 28 November 2022, Rostin Behnam, chair of the Commodity Futures Trading Commission (CFTC) said the opposite to Gensler.

Behnam detailed that he felt numerous cryptos were securities, but both bitcoin (BTC) and ETH were commodities.

BTC to USD

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Withdrawals staked on ETH increases in run-up to Shanghai

David Alexander of Binance Labs, the venture-capital arm of crypto exchange Binance said towards the end of 2022 that as withdrawals staked on ETH “now have a tentative release date, this has led to increased staking activity, the highest monthly volume since April”.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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