Crypto Company Grayscale Abandons Post-Merge PoW Ethereum Tokens
Grayscale officially abandons post-Merge PoW Ethereum tokens

Grayscale Drops Rights to Post-Merge Ethereum Tokens

On Sept. 18, cryptocurrency investment firm Grayscale announced that it has “irrevocably abandoned” all the rights to post-Merge proof-of-work (PoW) Ethereum tokens (ETHPoW) on behalf of the record date shareholders of each product.

Grayscale conducted a thorough review and concluded that the ETHPoW tokens have not developed meaningful liquidity, and that the products’ custodian doesn’t support such tokens. The firm wrote:

This decision comes more than a year after the Ethereum Merge, a move that saw Ethereum transition from PoW to proof-of-stake (PoS). The Merge occurred on Sept. 15, 2022, forking the Ethereum blockchain into the main PoS-based Ethereum and the minor PoW-based Ethereum.

Grayscale’s decision to drop its rights to ETHPoW tokens is another example of the crypto company’s commitment to finding the best stock and crypto app for its customers, as well as its dedication to crypto harmony one, crypto futures, crypto etc, and crypto ETFs.

Grayscale’s Decisions on EthereumPoW and Ethereum Futures ETF

After the Merge, Grayscale had to decide whether to acquire EthereumPoW tokens and offer ETHW to record date shareholders. It took the company six months to make a decision due to the uncertainty around ETHW support from digital asset custodians and trading venues.

Meanwhile, some crypto investment firms like ETC Group were trying to launch EthereumPoW exchange-traded products (ETPs). However, ETC Group terminated its ZETW ETP just six weeks after launch due to the lack of eligible custody providers.

The day before Grayscale proposed to launch a new Ethereum (ETH) futures exchange-traded fund, the company announced its decision on ETHW. On Sept. 19, Grayscale submitted a filing to the United States Securities and Exchange Commission to list and trade shares of the Grayscale Ethereum Futures Trust (ETH) ETF under the New York Stock Exchange Arca Rule 8.200-E.

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