Grayscale Reports Ethereum Proof-of-Work Token Rights Distribution to SEC – Bitcoin News

A Securities and Exchange Commission filing filed Sept. 16 shows Grayscale Investments said “the distribution of rights to Ethereum Proof of Work tokens.“The new ETHW blockchain was launched on September 15th and around 50-60 terahash per second (TH/s) of hashrate is dedicated to the new network. Grayscale notes that there is “uncertainty about whether digital asset custodians will support” the new ETHW coin.

The 2 Grayscale funds declare rights on the Fork ETHW

Grayscale Investments, the world’s largest cryptocurrency manager by assets under management (AUM), filed an application for registration of its two funds with the United States Securities Commission (SEC) for the rights to the newly launched ETHW.

Over the past 24 hours on September 16, the ETHW has been hovering in a 24 hour price range between $8.06 and $14.20. Moreover, the hashrate of ETHW is around 56.95 TH/s according to data provided by the mining pool 2miners. Grayscale has two funds that will reap the benefits of getting ETHW coins called into the repository”ETHPoW tokens“.

Grayscale clarifies that if it is able to sell the ETHPoW tokens, it will deliver the proceeds in cash after taking into account the costs incurred in the sale. The filing notes that the ETHW rights come 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 “, notes the filing of Grayscale. “The Fund currently holds rights to approximately 40,653.24325763 ETHPoW tokens“, adds the SEC filing of the cryptocurrency asset manager. However, the sale of the new token by the digital currency asset manager might not be easy and will depend on liquidity.

Trading venues for ETHPoW tokens are not widely established given that the Ethereum Proof of Work network was publicly launched on September 15, 2022, and it is unclear whether digital asset custodians support ETHPoW tokens or that trading markets with significant liquidity are developing“, says Grayscale. The company also indicates that it is not possible at this time to predict the current value of the net sale.

In the event that digital asset custodians support ETHPoW tokens and exchange markets develop, it is expected that the values ​​of ETHPoW tokens will fluctuate wildly for some time”indicates the Grayscale repository. “Due to this uncertainty and the potential for significant price volatility, it is not possible to predict the value of the rights to ETHPoW tokens.

Grayscale is not the only company with plans to buy ETHPoW tokens. Last week, Etc Group announced plans to list an exchange-traded product (ETP) based on the newly launched digital asset. A handful of other ethereum-based funds exist and if they hold ETH they will have the rights to the ETHW tokens on a 1:1 basis.

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Grayscale Reports Ethereum Proof-of-Work Token Rights Distribution to SEC – Bitcoin News

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