Ethereum Community Panics as Grayscale Takes New Stance as They Abandon ETH Proof-of-work Tokens

• Grayscale officially made the decision to remove Ethereum‘s Proof-of-Work (PoW) tokens from their plans. 
• Their reason is the lack of support and liquidity that comes with this type of token. 

Grayscale is one of the leading financial institutions in the world, and they have an interest in the crypto industry. So, they recently made a new decision regarding Ethereum PoW tokens. 

Grayscale Moves Away from Ethereum Proof of Work 

• The merge happened on the 15th of September, 2022. So, this is about a year since the Ethereum blockchain moved to a much better model of a blockchain network, which is the proof-of-stake protocol. The problem is that before the movement of the Ethereum network to PoS, many investment firms had several operations within the PoW blockchain. So, the issue they are facing is between retaining their PoW investments or leaving it entirely for the PoS network. 
• In the Ethereum investment ecosystem, a large part of it is within the PoS network, while the minority is the proof-of-work network. Since the Ethereum Merge, many investment firms are now focusing on the PoS side of Ethereum. So, Grayscale has a headache of continuing with their Ethereum‘s Proof-of-Work (PoW) tokens or Pravin leaving it. 
• At the end of the day, the popular investment firm decided to leave it for the Ethereum PoS tokens. So, they say their reason for doing so is due to the lack of liquidity and custodial support for the PoW Ethereum tokens. 

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🔥🚀Big news! Ethereum just made a major upgrade and switched to PoS with The Merge. But guess what? Some miners chose to stick with the old PoW chain and keep mining ETH. And they created a token called ETHW! Holders of ETH got an airdrop of ETHW, including Grayscale, who… pic.twitter.com/HQ1hLFUjuC

— You Don't Know (@YdkReal) September 20, 2023

Many Firms are Still Offering Ethereum‘s Proof-of-Work (PoW) tokens

Grayscale

• Although Grayscale said they will discontinue their Ethereum‘s Proof-of-Work (PoW) token offerings, other firms are waiting to continue. In fact, some of them are already providing offerings for Ethereum‘s Proof-of-Work (PoW) tokens. 
• On the other hand, it looks like Grayscale made the right decision by leaving the PoW tokens. So, some investment firms tried to keep on holding the Ethereum PoW tokens, but they failed after a short time. Firms like the ETC group tried creating EthereumPoW exchange-traded products (ETPs). However, it didn’t end well after, ending the endeavor within six weeks of starting it. 

What Next For Grayscale With ETFs? 

• According to many reports, the new move by Grayscale to leave Ethereum‘s Proof-of-Work (PoW) tokens is strategic. So, leaving this type of endeavor will allow the investment firm to put its focus on more rewarding endeavors. Moreover, The current market cap of Ethereum‘s Proof-of-Work (PoW) tokens is around $140 million. So, this is very low in comparison to that of Ethereum PoS tokens. 
• The recent development also shows how an upgrade can render an investment useless. So, immediately after the Ethereum transition to PoS, many PoW tokens went out of the spotlight. 

Conclusion 

Grayscale made a decision to move on from Ethereum‘s Proof-of-Work (PoW) tokens. So, the reason for this decision was due to a lack of liquidity and support from PoW tokens. Henceforth, their main focus will remain on pursuing other investments like the spot Ethereum and Bitcoin ETFs. 

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