Grayscale’s move to acquire and trade ETHPoW will tarry a little bit. As revealed, the firm will take more days to contemplate how and when to sell ETHPoW on behalf of its clients. Yesterday, Grayscale announced that there will be a review period for the firm to consider the market condition.
Furthermore, the firm established that the review period will spread between yesterday till the next 180 days. During this period, Grayscale intends to determine if it can purchase the ETHPoW coins. Worth noting that the coin under review is a forked asset that surfaced after the completion of the Ethereum Merge last September.
Accordingly, the firm’s review will look into the best way it can trade the token on behalf of the record date stakeholders. Meanwhile, Grayscale took this decision due to the emerging uncertainty regarding the embracement of ETHPoW coins by virtual assets custodians and trading platforms.
The firm cited that a lack of support from the aforementioned firms will affect the value of the token. Therefore, compelling it to struggle for stability and exposing holders to risk. Per this pointer, the firm will wait to monitor if the situation around the coin improves before proceeding with its plans.
Division among ETH community members
At the moment, Grayscale is one of the investment firms facing the dilemma of offering ETH services to their clients. The transition of Ethereum from the Proof Of Work consensus mechanism to the Proof Of Stake has created a division among investors to the detriment of investment firms.
Furthermore, some investors within the Ethereum community have transisted to the new model, while some are still on the previous network. With that, Ethereum has forked into the PoS-backed network and the EthereumPoW.
However, despite the confusion, some investment firms have embraced the ETHPoW investment initiative. Among these firms is the ETC group which has inaugurated an ETP service for the token.
Grayscale’s legal tussle with the SEC
Presently, Grayscale is at loggerheads with the United States Securities and Exchange Commission. The investment firm sued the SEC over its refusal to approve Grayscale’s request to offer BTC spot ETC. The lawsuit surfaced in an attempt to challenge the SEC’s July 6, 2022 order that prevented Grayscale from providing the services. On March 7, 2023, three judges sat to hear the argument of the two parties regarding the rejection.
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