Major cryptocurrency investment firm Grayscale has finally decided to relinquish all rights to its post-merger proof-of-work (PoW) Ethereum token (ETHPoW).
Grayscale announced this news on September 18 explain The company has “irrevocably waived” all rights to the ETHPoW tokens on behalf of each offering’s record date shareholders.
After a thorough review, Grayscale determined that the ETHPoW token has not yet developed meaningful liquidity and that the product custodian does not support such tokens. The company wrote:
“Accordingly, it is not possible to exercise its rights to acquire and sell ETHPoW tokens, and on behalf of record date shareholders, Grayscale waives its rights to these assets.”
Grayscale’s decision to relinquish rights to the ETHPoW token comes more than a year after the Ethereum merger, an event that marked Ethereum’s full transition from PoW to Proof of Stake (PoS). The merger took place on September 15, 2022, forking the Ethereum blockchain into Ethereum, which is primarily PoS-based, and Ethereum, which is secondary PoW-based.
Following the merger, Grayscale is considering whether the company should acquire EthereumPoW and sell ETHW on behalf of record-date shareholders. 180 days after the merger, the company took another six months to decide whether to acquire these PoW tokens, citing uncertainty about support for ETHW tokens from digital asset custodians and trading venues.
related: Ethereum Merger Anniversary – Energy Drops 99%, But Centralization Concerns Linger
Unlike Grayscale, some cryptocurrency investment firms such as ETC Group have attempted to launch dedicated EthereumPoW exchange-traded products (ETPs). ETC Group Final termination Its PoW-based ZETW ETP is just six weeks after launch, citing a lack of qualified custody providers.
News about Grayscale’s ETHW decision came one day before the Wall Street Journal report The company has launched a new Ethereum (ETH) futures exchange-traded fund, citing a filing with the U.S. Securities and Exchange Commission. Cointelegraph has not found the relevant SEC documents on the Internet. Grayscale did not immediately respond to Cointelegraph’s request for comment.
Svlook
