GrayScale Investment moves to sell all ETHPOW tokens

GrayScale Investment has announced plans to sell ETHPoW tokens it received from the PoW hard-fork following Ethereum’s transition to proof-of-stake (PoS).

Shortly after the Merge on Sept. 15, miners hard-forked Ethereum to launch the Ethereum PoW network. As proposed,  ETHPoW tokens were distributed to eligible ETH holders.

Two funds owned by GrayScale Investment received a cumulative sum of 3,100,629 ETHPoW tokens. Grayscale Ethereum Trust(ETHE) received approximately 3,059,976 ETHPoW tokens, while Grayscale Digital Large Cap Fund (GDLC) received  40,653 ETHPoW tokens.

The ETHE and GDLC funds will transfer ownership of their ETHPoW tokens to Grayscale Investment by the close of business on Sept. 26. Grayscale Investment is expected to retain custody of the tokens until it is able to sell them.

Our funds $ETHE & $GDLC have passively received the rights to forked ETHPoW tokens. To the extent it is practicable, we will look to sell these tokens & distribute net cash proceeds to record date shareholders.
Read our release for important details: https://t.co/0subq36to0

— Grayscale (@Grayscale) September 16, 2022

If exchange listing and deep liquidity are developed for ETHPoW tokens, Grayscale will move to sell its holdings and redistribute the proceeds to shareholders.

Grayscale added that it is not able to determine the value of the ETHPoW tokens as little liquidity has been created for trading across crypto exchanges.

Spot trading opened for ETHW token

Shortly after the merge, several major crypto exchanges launched spot trading for EthereumPoW (ETHW) token.

FTX announced its spot trading for ETHW and so far has executed $28.7 million worth of trades. Other exchanges that have opened spot trading for ETHW tokens include Bybit, MEXC Global, Bitfinex, Kraken, and Huobi.

OKX moved to launch USDT-marginal perpetual trading for ETHW. According to Coinmarketcap data, OKX is handling 38.19% of ETHW trading, which amounts to approximately $39.7 million.

As of press time, ETHW’s price is trading at $11, indicating an over 80% fall from its 24-hour high of $60.68.