ETC Group launches crypto ETP based on PoW Ethereum hard fork

ETC Group will continue to rely on Ethereum's original PoW consensus for its current Ethereum ETP, the company announced on Wednesday. New

Digital asset-backed securities provider ETC Group will continue to rely on Ethereum's original 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 upgrade that is expected to move the Ethereum blockchain from a mining-based PoW to a non-mining proof-of-stake (PoS).

ETC Group's new Ethereum ETP will be based on a forked Ethereum PoW chain, representing a group of miners opposing the switch from Ethereum to PoS. The PoW chain will have a new token called ETHW, which will provide a basis for the new ETC Group Physical ETP called ETC Group Physical EthereumPoW, or ETHWetc.

According to the announcement, ETHWetc is expected to be listed on Deutsche Boerse's electronic trading platform, Xetra, under the ticker symbol ZETW. ETC Group noted that the company expects the listing to take place shortly after the September 16 fork event.

ETC Group also states that ZETW will automatically replace the original ETC Group Physical Ethereum (ZETH) on a 1-for-1 basis on brokerage accounts.

Bradley Duke, founder and co-CEO of ETC Group, pointed out that the company's original vision and commitment was to benefit from hard forks into the underlying cryptocurrencies. "In accordance with this [...], all holders of our Ethereum-based ETP will receive, at no cost, corresponding units of the new Ethereum PoW ETP soon after the Ethereum hard fork," he noted, adding :

"We believe it is fair that investors in our products receive proceeds from this fork."

The news comes amid the crypto industry actively preparing for the upcoming Ethereum merger, with various companies looking for new mining options...