Grayscale, one of the world’s largest cryptocurrency asset managers, may be preparing a cash launch for holders of its Ethereum Trust and Digital Large Cap Fund.
The cash grant represents the value of ETHPoW (ETHW) tokens that grayscale investors are entitled to following the network fork, according to a company filing with the SEC on Friday.
Free money for grayscale investors?
The archiving declared Grayscale’s right to distribute the cash equivalent of ETHW tokens to its Ethereum product holders by September 26. That said, the exact value of these assets is unclear.
“There is uncertainty as to whether digital asset custodians will support ETHPoW tokens or whether trading markets with significant liquidity will develop,” the filing says.
ETHW was launched just hours after the Ethereum merger, which turned Ethereum’s consensus mechanism into a proof of stake. The new chain was organized by a consortium of former Ethereum miners in order to preserve the proof-of-work mechanism that keeps them profitable.
Until now, trading of ETHW on exchanges had been done for IOUs, rather than real coins. “Holders” included those who held ETH on the exchanges before the fork, thus giving them a future right to those tokens on the exchange.
Grayscale’s Ethereum Trust and Digital Large Cap Fund offer investors exposure to ETH through the firm’s reserve coins. Grayscale based current figureshas more than 3 million ETH in its trust and more than 40,000 ETH in its fund, from which investors also get rights to ETHW tokens at a ratio of 1:1.
Important exchanges like Binance i Coinbase they have also confirmed that they would grant a fair compensation of ETHW to accounts holding ETH before the merger. However, both companies clarified that ETHW must undergo a listing review process before making it available for trading.
Grayscale’s presentation said its method for addressing future Ethereum forks will be determined on a case-by-case basis.
The status of ETHW
At the time of the merger, ETHW was the first token to face high price volatility, rather than ETH.
The currency IOU he met from $30 to $51 the night before, before collapsing back to just $19 later Thursday. It is now trading at an all-time low of just $9.35.
However, the coin is still gaining recognition among the old Ethereum mining pools, which have extended support to the new chain.
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