After the Ethereum merger, Grayscale continues to examine the ETHPoW ruling.
Grayscale will take at most 180 days to decide whether, when, and how to sell ETHPoW on behalf of record date stockholders.
Grayscale Investments, a cryptocurrency investment business, is taking its time deciding whether to acquire and sell post-Merge forked Ethereum tokens.
Grayscale indicated on March 16 that it plans to extend the evaluation time for assessing the market situation in order to evaluate if it can acquire EthereumPoW (ETHW) tokens — the split asset that arose during Ethereum’s Merging in September 2022.
During the review time, the firm will also determine whether, when, and how Grayscale would sell ETHW on behalf of the record date stockholders. “Such review period is not currently projected to exceed 180 days from the date of this notice,” Grayscale said in the announcement.
Grayscale attributed the review period extension to the persistent uncertainty surrounding the support of ETHW tokens by digital asset custodians and trading platforms. “It is likely that the ETHPoW token’s value would fluctuate widely for some time if digital asset custodians support the ETHPoW tokens and/or trading marketplaces arise,” Grayscale said, adding:
In September 2022, Ethereum, the second-largest blockchain network by market value after Bitcoin, completed the Merge, a major consensus upgrade. The Ethereum network was upgraded from the proof-of-work (PoW) consensus method to the proof-of-stake (PoS) consensus algorithm. Because certain members of the Ethereum community wanted to maintain utilising the mining-based PoW Ethereum model, Ethereum split into two blockchains: the primary PoS-based Ethereum and EthereumPoW.
While some investors may want to have exposure to ETHW, the emergence of ETHW has presented a substantial issue for crypto investment firms giving exposure to Ethereum. Certain firms, such as ETC Group, a European exchange-traded product (ETP) issuer, opted to develop a new ETP that provides exclusive exposure to ETHW.
“The new ETP appears to be superior because we don’t know whether ETHW will succeed or fail,” ETC Group founder Bradley Duke told mentioned in a report in September 2022.