Grayscale Is Giving Up All Rights to Proof-of-Work Ethereum Tokens After the Merger
Grayscale is giving up all rights to Proof-of-Work Ethereum tokens one year after the Ethereum merger.
Major cryptocurrency investment firm Grayscale has finally made the decision to acquire all rights to Post-Merge Proof-of-Work (PoW), Ethereum, to give up tokens.
Grayscale announced the news on September 18, saying it had “irrevocably” relinquished all rights to ETHPoW to investors in each product as of the effective date.
Grayscale concluded that ETHPoW has not gained significant liquidity and the product’s custodian does not support these tokens.
The company stated: “Therefore, it is impossible to exercise the right to buy and sell ETHPoW, and Grayscale waives these rights on behalf of the record date shareholders. The merger took place on September 15, 2022. It divided the Ethereum blockchain into two parts, a main PoS-based Ethereum (and a smaller PoW-based Ethereum).
As part of the merger, Grayscale was considering whether to buy EthereumPoW tokens and sell ETHW to shareholders at the closing date. The company waited another six months after the merger to decide whether to purchase these PoW tokens or not. They cited uncertainty surrounding the support of ETHW tokens from digital asset custodians.
Some cryptocurrency investment firms, such as ETC Group, have attempted to launch dedicated EthereumPoW Exchange-Traded Products (ETPs) to bring to market. ETC Group canceled its PoW-based ZETW ETP six weeks after its launch, citing lack of suitable custodians.
The Wall Street Journal reported on Grayscale’s ETHW announcement a day before the Wall Street Journal announced that the company had launched a new futures exchange-traded fund for Ether (ETH) $1,629 and cited a filing with the United States Securities and Exchange Commission.
