Grayscale Investments filed a Securities and Exchange Commission (September 16) filing stating that Grayscale Investments had declared the "distribution of right to Ethereum Proof of Work tokens." About 50-60 terahash per sec (TH/s), of hashrate was dedicated to the new network. Grayscale states that it's not known if digital asset custodians support the newly launched ETHW currency.
Grayscale's 2 Funds Declare Rights to ETHW Fork
Grayscale Investments, the world's biggest crypto asset manager (assets under management) (AUM), filed a declaration to the U.S Securities and Exchange Commission (SEC), for rights to the newly launched ETHW.
ETHW's last 24-hour price range was $8.06 per unit to $14.20 per unit over the past 24 hours. According to data from 2miners, ETHW's hashrate measures 56.95 TH/s. Grayscale has two funds which will benefit from obtaining the ETHW coin referred to as "ETHPoW tokens" in the filing.
Grayscale explains that if it is able to sell ETHPoW tokens, it will remit cash proceeds after deducting the fees. The Grayscale Digital Large Cap Fund and Grayscale Ethereum Trust are the sources of the ETHW rights, according to the filing.
Grayscale notes that the Trust currently has rights to 3,059,976.06309448 EthereumPoW tokens. The SEC filing states that the Fund currently has rights to 40,653.24325763 EthereumPoW tokens. The sale of the new token by the digital currency asset manager may be difficult and will depend on liquidity.
Grayscale explains that "the trading venues for ETHPoW tokens are not widely established" since the Ethereum Proof-of-Work Network was launched publicly on September 15, 2022. Grayscale also explains that there is uncertainty about whether digital asset custodians support ETHPoW tokens and if trading markets will develop with meaningful liquidity. Grayscale also stated that it is impossible to determine the value of the net sale at this time.
Grayscale's filing states that "in the event digital asset custodians support ETHPoW tokens and trading markets develop, it is anticipated that there will be widely fluctuating ETHPoW tokens values for some time." "Due to this uncertainty and the possibility of significant volatility in prices, it is impossible to predict the value rights to ETHPoW tokens."
Grayscale isn't the only company that has an ETH-based fund. It will also be using the ETHW fork. Etc Group announced last week that it will list an exchange-traded product, (ETP), based on the newly launched digital assets. There are a few other ethereum-based funds, and those who hold ETH will be able to receive ETHW tokens in a 1:1 ratio.
What do you think Grayscale's declaration of rights to the newly launched ETHW currency? Please comment below to let us know your thoughts on this topic.
By: Jamie Redman
Title: Grayscale Declares Distribution of Rights to Ethereum Proof-of-Work Tokens With SEC
Sourced From: news.bitcoin.com/grayscale-declares-distribution-of-rights-to-ethereum-proof-of-work-tokens-with-sec/
Published Date: Sat, 17 Sep 2022 19:00:54 +0000