Grayscale Declares Distribution of Rights to Ethereum Proof-of-Work Tokens With SEC

Ethereum

A Securities and Exchange Commission filing filed on September 16 shows that the company Grayscale Investments has declared “distribution of rights to Ethereum Proof of Work Tokens.” The newly launched ETHW blockchain went live on September 15 and roughly 50-60 terahash per second (TH/s) of hashrate is dedicated to the new network. Grayscale notes that there’s “uncertainty as to whether digital asset custodians will support” the newly launched ETHW coin.

Grayscale’s 2 Funds Announce Rights to ETHW Fork

Assets Under Management (AUM), the world’s largest crypto asset manager by Grayscale Investments, filed a declaration with the US Securities and Exchange Commission (SEC) for the rights to the newly launched ETHW.

During the last 24 hours on September 16, ETHW’s 24-hour price range has been between $8.06 per unit and $14.20 per unit. Moreover, ETHW’s hashrate is around 56.95 TH/s according to data supplied by the mining pool 2miners. Grayscale has two funds that will reap the benefits of obtaining the ETHW coins referred to in the filing as “ETHPoW tokens.”

Grayscale details that if it is able to sell the ETHPoW token it will remit the cash proceeds, taking into account the fees from the sale. The filing notes that the ETHW rights stem from the Grayscale Digital Large Cap Fund and the Grayscale Ethereum Trust.

“The Trust currently holds rights to approximately 3,059,976.06309448 ETHPoW tokens,” Grayscale’s filing notes. “The Fund currently holds rights to approximately 40,653.24325763 ETHPoW tokens,” the crypto asset manager’s SEC filing adds. However, the digital currency asset manager’s sale of the new token may not be easy and it will depend on liquidity.

“The trading venues for the ETHPoW token have not been widely established since the Ethereum Proof-of-Work network was publicly launched on September 15, 2022, and there is uncertainty about whether the digital asset custodian ETHPoW Will support the token or if there will be a trading market with meaningful liquidity, develop,” explains Grayscale. The company also said that it is not possible to estimate the current value of net sales.

“In the event digital asset custodians do support ETHPoW tokens and trading markets do develop, it is expected that there will be widely fluctuating values for ETHPoW tokens for some time,” Grayscale’s filing says. “As a result of this uncertainty and the potential for significant volatility in prices it is not possible to predict the value of rights to ETHPoW tokens.”

Grayscale isn’t the only company with an Ethereum (ETH) based fund that would do something with an ETHW fork. Last week, Etc Group detailed that it would list an exchange-traded product (ETP) based on the newly launched digital asset. Some other Ethereum (ETH) based funds exist and if they have ETH they will have rights to ETHW tokens on 1:1 basis.

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