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

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 Declare Rights to ETHW Fork

The world’s largest crypto asset manager by assets under management (AUM), Grayscale Investments, filed a declaration with the U.S. Securities and Exchange Commission (SEC) for 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’s able to sell the ETHPoW tokens it will remit the cash proceeds after taking into account the fees incurred from the sale. Grayscale Digital Large Cap Fund, Grayscale Ethereum Trust are the sources of the ETHW rights.

“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 ETHPoW tokens are not broadly established given that the Ethereum Proof of Work Network was publicly launched on September 15, 2022, and there is uncertainty as to whether digital asset custodians will support ETHPoW tokens or if trading markets with meaningful liquidity will develop,” Grayscale explains. The company also says it’s not possible right now to predict the current value of the net sale.

“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 will not be the only company to have an ETH (ETH) based funds. Etc Group revealed last week it would launch an exchange-traded product, (ETP), that is based upon the new digital asset. 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.

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Do you agree with Grayscale claiming the rights to the newly released ETHW coin Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at News is Jamie Redman. Redman is an active participant in the cryptocurrency community from 2011. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for News, with over 6,000 articles on disruptive protocols.

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