Grayscale Champions Ethereum’s Future With ETHW Initiative

On behalf of its shareholders, Grayscale has chosen to irrevocably forfeit the ETHW tokens allocated to record date shareholders as of September 26, 2022.

This decision stems from the firm’s assessment that the product’s custodian does not offer support for ETHPoW (Ethereum Proof of Work) and has not established a liquid trading venue for ETHPoW tokens. Grayscale’s actions signify the challenges faced by cryptocurrency asset managers when dealing with assets that may not align with their intended strategies or face insufficient infrastructure support.

Grayscale’s ETHE and GDLC funds passively received approximately 3.06 million and 40,000 ETHW airdrop tokens last year, representing a substantial amount of assets. By relinquishing the rights to these tokens, the firm is acting in its capacity as an agent of the record date shareholders, prioritizing their interests.

It’s important to clarify that Grayscale‘s decision is solely related to its role as the agent of the record date shareholders and does not impact its status as the sponsor or manager of the respective products.

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