Major cryptocurrency investment firm Grayscale has finally made the decision to abandon all rights to the post-merger proof-of-work (PoW) Ethereum (ETHPoW) tokens.
Announcing the news on September 18, Grayscale saying that the company has "irrevocably abandoned" all rights to ETHPoW tokens on behalf of the shareholders with the registration date of each product.
After a thorough review, Grayscale determined that ETHPoW tokens have not developed significant liquidity, while the custodian of the products does not support such tokens. The firm wrote:
โAs such, it is not possible to exercise the rights to acquire and sell ETHPoW tokens, and on behalf of the shareholders of the record date, Grayscale is abandoning the rights to these assets.โ
Grayscale's decision to remove rights to ETHPoW tokens comes more than a year after the Ethereum merger, an event that marked Ethereum's complete transition from PoW to proof-of-stake (PoS). The fusion occurred on September 15, 2022forking the Ethereum blockchain into PoS-based main Ether (ETH) and minor PoW-based EthereumPoW (ETHW) tokens.
After the merger, Grayscale was considering whether the company should acquire EthereumPoW and sell ETHW on behalf of record date shareholders. 180 days after the merger, it took another six months for the company to make a decision on whether to acquire those PoW tokens, citing uncertainty over ETHW token support by digital asset custodians and trading venues.
Related: Ethereum Merge Anniversary: โโ99% Power Drop, But Centralization Fears Persist
Unlike Grayscale, Some Crypto Investment Firms Like It The ETC Group has attempted to launch EthereumPoW dedicated exchange-traded products (ETPs). The ETC Group will eventually finished its PoW-based ZETW ETP just six weeks after launch, citing the absence of eligible escrow providers.
The news about Grayscale's ETHW decision came a day earlier. The Wall Street Journal reported that the company has launched a new Ether futures exchange-traded fund, citing a filing with the Securities and Exchange Commission. Cointelegraph has been unable to locate a related SEC filing online. Grayscale did not immediately respond to Cointelegraph's request for comment.
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