Grayscale officially abandons post-Merge PoW Ethereum tokens

Major cryptocurrency concern steadfast Grayscale has yet taken a determination to wantonness each the rights to the post-Merge proof-of-work (PoW) Ethereum tokens (ETHPoW).

Announcing the quality connected Sept. 18, Grayscale said that the steadfast has “irrevocably abandoned” each the rights to ETHPoW tokens connected behalf of the grounds day shareholders of each product.

After thorough review, Grayscale determined that the ETHPoW tokens person not developed meaningful liquidity, portion the products’ custodian doesn’t enactment specified tokens. The steadfast wrote:

“As such, it is not imaginable to workout the rights to get and merchantability the ETHPoW tokens, and connected behalf of the grounds day shareholders, Grayscale is abandoning the rights to these assets.”

Grayscale’s determination to driblet the rights for ETHPoW tokens comes much than a twelvemonth aft the Ethereum Merge, an lawsuit that marked Ethereum’s afloat modulation from PoW to proof-of-stake (PoS). The Merge occurred connected Sept. 15, 2022, forking the Ethereum blockchain into main PoS-based Ether (ETH) and insignificant PoW-based EthereumPoW (ETHW) tokens.

In the aftermath of the Merge, Grayscale was considering whether the institution should get EthereumPoW and merchantability ETHW connected behalf of the grounds day shareholders. 180 days aft the Merge, the institution took different six months to marque a determination connected whether to get those PoW tokens, citing uncertainty regarding the enactment of ETHW tokens by integer plus custodians and trading venues.

Related: Ethereum Merge day — 99% vigor driblet but centralization fears linger

Unlike Grayscale, immoderate cryptocurrency concern firms similar ETC Group person attempted to launch dedicated EthereumPoW exchange-traded products (ETPs). ETC Group yet terminated its PoW-based ZETW ETP conscionable six weeks aft the launch, citing the lack of eligible custody providers.

The quality connected Grayscale’s ETHW determination came 1 time earlier The Wall Street Journal reported that the steadfast has launched a caller Ether futures exchange-traded fund, citing a filing with the Securities and Exchange Commission. Cointelegraph hasn’t been capable to find a related SEC filing online. Grayscale did not instantly respond to Cointelegraph’s petition for comment.