Digital asset-backed securities provider ETC Group will continue to rely on the original Ethereum proof-of-work (PoW) consensus for its current Ethereum exchange-traded product (ETP).
ETC Group officially announced on Wednesday the launch of a new Ethereum ETP in response to the upcoming Ethereum merger.. Scheduled for mid-September, the Ethereum merger is a long-awaited consensus update that will see the Ethereum blockchain go from PoW mining-based to proof-of-stake (PoS) mining-free.
ETC Group’s new Ethereum ETP will be based on a forked Ethereum PoW chain, representing a group of miners who oppose the move from Ethereum to PoS. The PoW chain will have a new token called ETHW, which will provide a foundation for the ETC Group’s new physical-backed ETP called ETC Group Physical EthereumPoW, or ETHWetc.
Per the announcement, ETHWetc is expected to be listed on Deutsche Boerse’s electronic trading platform Xetra under the symbol ZETW. The ETC Group noted that the company expects the listing to take place shortly after the fork event on September 16.
The ETC Group also said that ZETW will automatically replace the original ETC Group Physical Ethereum (ZETH) in a 1:1 ratio in brokerage accounts.
Bradley Duke, founder and co-CEO of ETC Group, noted that profiting from hard forks of underlying cryptocurrencies is the firm’s original vision and commitment.. “In line with this […] all holders of our Ethereum-based ETP will receive, free of charge, equivalent units of the new Ethereum PoW ETP shortly after the Ethereum hard fork occurs,” he noted, adding:
“We think it’s fair that investors in our products receive the proceeds from this fork.”
The news comes amid the cryptocurrency industry’s active preparation for the upcoming Ethereum merger, with several companies looking for new mining options or launching Ethereum staking.
On Wednesday, Swiss-regulated cryptocurrency platform SEBA Bank enabled Ether (ETH) staking services for institutional investors. Clients of the institutional-grade offer to generate rewards based on their Ether holdings on a monthly basis, the bank said in a statement. Canadian cryptocurrency miner Hive Blockchain also announced Tuesday that it has been working to replace ETH mining with other minable coins in the event of Ethereum transitioning to PoS.
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