1. BITBILIHome
  2. Article

Grayscale Investments abandons rights to Ethereum Proof-of-Work tokens

• 99 views

TL;DR Breakdown

  • Grayscale Investments, the world’s largest digital currency asset manager, has abandoned all rights to Ethereum’s Proof-of-Work (PoW) tokens, citing lack of meaningful liquidity and custodial support.
  • The decision comes more than a year after Ethereum’s transition from a PoW to a Proof-of-Stake (PoS) system, an event known as the Ethereum Merge.
  • Unlike Grayscale, some firms like ETC Group attempted to launch dedicated EthereumPoW exchange-traded products but terminated them due to similar challenges, highlighting the evolving landscape of digital assets.

Description

Grayscale Investments, the world’s largest digital currency asset manager, announced its decision to relinquish all rights to Ethereum‘s Proof-of-Work (PoW) tokens, known as ETHPoW. The announcement came on September 18, more than a year after Ethereum’s transition from a PoW to a Proof-of-Stake (PoS) system, an event known as the Ethereum Merge. Grayscale cited the … Read more

Grayscale Investments, the world’s largest digital currency asset manager, announced its decision to relinquish all rights to Ethereum‘s Proof-of-Work (PoW) tokens, known as ETHPoW. The announcement came on September 18, more than a year after Ethereum’s transition from a PoW to a Proof-of-Stake (PoS) system, an event known as the Ethereum Merge. Grayscale cited the lack of meaningful liquidity and custodial support for ETHPoW tokens as the primary reasons for this move.

The Ethereum Merge, which took place on September 15, 2022, was a significant milestone in the crypto industry. However, it marked Ethereum’s full transition from a PoW to a PoS system, dividing the Ethereum blockchain into a main PoS-based Ether and a minor PoW-based EthereumPoW. Following this event, Grayscale spent an extended period evaluating whether to acquire EthereumPoW tokens on behalf of its record date shareholders. 

After a year-long deliberation, the firm decided against it, citing uncertainties regarding the support of these tokens by digital asset custodians and trading platforms.

Unlike Grayscale, some investment firms like ETC Group attempted to launch dedicated EthereumPoW exchange-traded products (ETPs). However, these efforts were short-lived. ETC Group terminated its PoW-based ETP just six weeks after its launch due to the absence of eligible custody providers.

The future of Grayscale and Ethereum

According to a Wall Street Journal report, Grayscale’s decision to abandon ETHPoW comes at a time when the firm is reportedly launching a new Ether futures exchange-traded fund.  Grayscale’s move to relinquish rights to ETHPoW tokens could be seen as a strategic decision to focus on more promising and supported aspects of the Ethereum ecosystem. The market cap of the old ETHPoW is currently around $140 million, a figure that pales in comparison to Ethereum’s PoS tokens. 

Grayscale’s decision to abandon rights to ETHPoW tokens highlights the challenges and uncertainties that investment firms face in the ever-changing world of digital assets. With Ethereum’s transition to a PoS system, the relevance of its older PoW tokens has diminished, leading major investment firms like Grayscale to reevaluate their strategies.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Grayscale Investments abandons rights to Ethereum Proof-of-Work tokens

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月21日 07:58
Next 2023年9月21日 08:37

Related articles

  • U.S. senator Menendez is about to go to prison for bribery

    Description Amidst a storm of accusations, Senator Robert Menendez of New Jersey faces what might be his most precarious legal battle to date. The recent allegations suggest that Menendez and his spouse, Nadine, were deeply embedded in a bribery scheme with ties stretching across continents. At the heart of the matter? Substantial sums of money, gold … Read more Amidst a storm of accusations, Senator Robert Menendez of New Jersey faces what might be his most precarious legal battle to date. The recent allegations suggest that Menendez and his spouse, Nadine, were deeply embedded in a bribery scheme with ties stretching across continents. At the heart of the matter? Substantial sums of money, gold bars, and a luxury vehicle, pointing to transactions made in exchange for political favors. A History Repeated: Menendez’s Tumultuous Track Record Menendez is no stranger to the spotlight, particularly when it’s accompanied by controversy. The latest indictment accuses the Democratic senator of accepting vast sums in bribes in exchange for leveraging his influence to benefit the Egyptian government and an associated Egyptian-American businessman. This isn’t Menendez’s…

    Article 2023年9月24日

  • Uniswap price analysis: UNI shows bearish potential at $5.1

    TL;DR Breakdown Uniswap price analysis is bearish today. The strongest resistance is present at $5.351. The strongest support is present at $5.101. Uniswap price analysis reveals that the market is following a negative trend below the $5.5 mark and is likely to remain today May 29, 2023. The UNI/USD pairing demonstrated a notable upward trend on May 27, 2023, as the price surged from $4.9 to $5.2. However, this positive momentum was short-lived, as the subsequent day, May 28, 2023, witnessed a significant bearish trend in the cryptocurrency’s value. Consequently, the price experienced a notable decline, ultimately settling at $5.1. Looking ahead, market projections suggest that the price of Uniswap is likely to maintain a range around the $5.5 mark until the beginning of June. Uniswap, a prominent decentralized exchange protocol, is currently valued at $5.13, with a substantial trading volume of $243.34 million over the past 24 hours. Its market capitalization stands at $2.96 billion, and it holds a market dominance of 0.25%. Notably, the price of UNI, Uniswap’s native token, has observed a 1.17% increase within the last day….

    Article 2023年6月2日

  • The China enigma: Investors left in the dark

    TL;DR Breakdown Chinese stocks’ rapid rise and subsequent fall left investors puzzled. Expectations of US-China relations improvement, consumer spending surge, and Beijing’s economic stimulus fell short. Investors’ hopes dampened due to geopolitical tensions and cautious spending by Chinese consumers. Despite setbacks, some expect China to increase stimulus measures and predict positive market performance. Description Navigating the shadowy contours of China’s investment landscape has left many global investors disoriented. The perplexing climb and subsequent crash of Chinese stocks early this year only underscores the enigmatic nature of the world’s second-largest economy. Let’s unravel the circumstances that have left investors in the dark. The rise and fall of China stocks As … Read more Navigating the shadowy contours of China’s investment landscape has left many global investors disoriented. The perplexing climb and subsequent crash of Chinese stocks early this year only underscores the enigmatic nature of the world’s second-largest economy. Let’s unravel the circumstances that have left investors in the dark. The rise and fall of China stocks As the stringent Covid restrictions started lifting in January, optimism soared high for the…

    Article 2023年7月7日

  • Weekly Crypto Price Analysis: BTC, ETH, BNB, DOGE, ADA, XRP, And SOL

    TL;DR Breakdown Weekly crypto price analysis shows most of the tokens have been trading in mixed reactions, with bull and bearish patterns emerging in the market. Bitcoin price analysis has been hovering below the $27,000 level for most days in the week, with minor corrections occurring in between. Ethereum has been trading below $1,700, with a slight downward trend. Description The Weekly crypto analysis reveals that most cryptocurrencies have been trading in mixed signals, with bullish and bearish trends visible in the market. On August 25th, Jerome Powell, the Chair of the Federal Reserve, delivered a lecture at the Jackson Hole symposium. During his address, Powell expressed concern about the persistently elevated levels of inflation … Read more The Weekly crypto analysis reveals that most cryptocurrencies have been trading in mixed signals, with bullish and bearish trends visible in the market. On August 25th, Jerome Powell, the Chair of the Federal Reserve, delivered a lecture at the Jackson Hole symposium. During his address, Powell expressed concern about the persistently elevated levels of inflation and emphasized the Federal Reserve’s willingness to…

    Article 2023年8月27日

  • Italy’s plan to remain on the board of ECB

    TL;DR Breakdown Italy plans to nominate senior Bank of Italy official, Piero Cipollone, to the ECB’s decision-making body to maintain its influence. If successful, Italy will retain two votes on the ECB’s rate-setting governing council. Cipollone, with strong economics training and experience in payments, may oversee the ECB’s digital euro plan. Description Amid a whirlwind of financial and policy shifts, Italy is set to stand its ground in the European Central Bank’s (ECB) influential circles. With the proposition of senior Bank of Italy official, Piero Cipollone, as its candidate for a spot on the ECB’s decision-making panel, Italy hopes to maintain its influence over the bloc’s monetary … Read more Amid a whirlwind of financial and policy shifts, Italy is set to stand its ground in the European Central Bank’s (ECB) influential circles. With the proposition of senior Bank of Italy official, Piero Cipollone, as its candidate for a spot on the ECB’s decision-making panel, Italy hopes to maintain its influence over the bloc’s monetary matters. Italy’s strategic play Inside sources reveal that Cipollone is the Italian government’s preferred candidate…

    Article 2023年7月24日
TOP