Grayscale Announces Date for the Distribution of EthereumPoW (ETHW) Proceeds to Its Clients.
The company will distribute the net sales of ETHW to shareholders of ETHE and GDLC.
Leading digital currency asset manager, Grayscale, has announced that two of its funds have passively received the rights to forked EthereumPoW (ETHW) tokens.
According to an announcement today, Grayscale currently has rights to ETHW because the company has two Ethereum-related funds, Grayscale Ethereum Trust (ETHE) and Grayscale Digital Large Cap Fund (GDLC), which give investors indirect exposure to ETH.
For ETHE, Grayscale has the right to approximately 3,059,976.06309448 ETHPoW tokens, representing 0.00986585 ETHPoW tokens per share of the total 310,158,500 shares the Trust currently has.
Similarly, Grayscale also has passive rights to a total of 40,653.24325763 ETHPoW tokens for GDLC, representing 0.00256206 ETHPoW tokens per share based on 15,867,400 shares.
Grayscale will be appointed as agents of the funds and will receive the forked Ethereum tokens on behalf of its clients.
“The Agent may determine, in its sole discretion, whether, when, and in what manner to sell the ETHPoW tokens it holds on behalf of the Record Date Shareholders of the applicable Product. In addition, the Agent may choose to abandon the ETHPoW tokens held by it on behalf of the applicable Product… and sell them over a period of time, which is currently not expected to exceed 180 days,” Grayscale said in a statement.
Grayscale added that it would decide what platform to sell the tokens and distribute the net cash proceeds to holders of ETHE and GDLC products on September 26, 2022. The company added that it might use any of its affiliated dealers, including Genesis Global, to facilitate trading the ETHW tokens.
The leading digital currency asset manager expects the value of ETHW to fluctuate massively since there is no tendency that trading markets with meaningful liquidity for the newly forked Ethereum tokens will be established.
“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 if any, that the Agent will be able to realize from sales of ETHPoW tokens after the Record Date,” Grayscale added.
EthereumPoW Launches After Merge Upgrade
Yesterday, the Ethereum Proof-of-Work network officially made its debut after the launch of Ethereum Merge. The forked Ethereum chain has already made some progress. As reported, OKLink launched an explorer for ETHW and the cryptocurrency is already listed on popular exchanges, including FTX.