March 31, 2023

Grayscale Investments filed a distribution of rights declaration with the US Securities and Exchange Commission over ETHW tokens.

According to a press release from the largest digital assets manager, the firm established September 26 as the record date for the distribution of rights for the ETH Proof-of-Work (PoW) tokens. 

On the record date, Grayscale will assume the role of agent for the product eligible for the ETHW tokens, and the rights of the product to ETHW tokens will be transferred to Grayscale Investments.

According to the firm, the Trust has a claim to over 3 million ETHW tokens and the Fund to 40.6 million ETHW tokens. It intends to acquire the tokens and then sell them within a period that would likely not exceed 180 days.

However, the firm added that it would have full discretion in how it decides to sell the and may choose to abandon the tokens.

If it sells the tokens, the firm will distribute the cash proceeds among the shareholders of the Product after removing any markup fee or cost necessary for the sale.

The ETHW tokens are expected airdrops from the ETH hard fork post-merge. While there was some interest in the hard fork led by Chandler Guo before the merge, the network has had a fairly bad start, and so has the asset.

ETHW Token Value Declines

The ETHW token is currently worth $9.585 on CoinMarketCap, an 83.3% drop from its listing price of $58.54 on September 3. In addition, it’s over 20% down since it became public on September 15.

The grayscale press release even mentioned this, stating that due to “uncertainty and the potential for significant volatility in prices, it is not possible to predict the value of rights to ETHPoW tokens.”

However, the ETHW is still IOUs, and those who eventually migrate to the hard forks will have the value of ETH reflected in the new tokens. But concerns remain as to which ETH proof of work token will be listed.

Poloniex Lists EthereumFair

Most exchanges say they will evaluate each token individually. But Poloniex has already announced it will list EthereumFair (ETF), a forked chain supported by ClassZZ and BitCoke, as its core Ethereum PoW token.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.


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