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Grayscale broadens ETHPoW review post-Merge Ethereum

Grayscale broadens ETHPoW review post-Merge Ethereum

Grayscale Investments, a company that invests in cryptocurrencies, is taking its time to decide if it wants to buy and sell forked Ethereum tokens after the Merge split.

Grayscale said on March 16 that it plans to extend the review period to figure out if it can buy EthereumPoW (ETHW) tokens, which are the forked asset that came about after Ethereum’s Merge in September 2022.

selling ETHW on behalf of record-date shareholders

During this time, the company will also decide if, when, and how Grayscale will sell ETHW on behalf of the record date shareholders. Grayscale said in the announcement,  “Such review period is not currently expected to exceed 180 days from the date hereof.”

“If digital asset custodians do support the ETHPoW tokens and/or trading markets do develop, it is expected that the ETHPoW token’s value will fluctuate widely for some time,” said Grayscale. “This will happen if digital asset custodians support ETHPoW tokens and/or trading markets develop.”

“It is not possible to predict whether Grayscale, as agent, will be able to acquire the ETHPoW tokens or the value, if any, that Grayscale, as agent, will be able to realize from sales of the ETHPoW tokens.”

In September 2022, the Merge, a major consensus upgrade, was finished on Ethereum, which was the second-largest blockchain network by market value after Bitcoin. The proof-of-work (PoW) consensus algorithm was changed to the proof-of-stake (PoS) consensus algorithm on the Ethereum network. Because some people in the Ethereum community wanted to keep using the mining-based PoW Ethereum model, Ethereum split into two blockchains: the main PoS-based Ethereum and EthereumPoW.

ETP issuer ETC Group next plans

Because some investors might want to invest in ETHW, the rise of ETHW has made it much harder for crypto investment firms that offer exposure to Ethereum to do so. Some companies, like the European exchange-traded product (ETP) issuer ETC Group, decided to start a new ETP that gives investors exclusive access to ETHW.

Bradley Duke, the founder of ETC Group, told Cointelegraph in September 2022, “The new ETP seems better because we just don’t know what will happen whether ETHW will succeed or not.”

Grayscale said in September that the Grayscale Ethereum Trust and the Grayscale Digital Large Cap Fund, two products related to Ethereum, had declared a right distribution to ETHW. By the end of September, the forks had given the tokens to each product.

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About MahKa

MahKa loves exploring the decentralized world. She writes about NFTs, the metaverse, Web3 and similar topics.

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