ETC Group, a digital asset-backed securities provider, will continue to rely upon Ethereum’s original proof of work (PoW), consensus for its current Ethereum exchange traded product (ETP).
ETC Group announced Wednesday that a new Ethereum ETP was launched in response to the forthcoming Ethereum Merge. The Ethereum Merge, a long-awaited consensus upgrade, is scheduled to take place in mid-September. It is expected to transform the Ethereum blockchain’s mining-based PoW into a mining-free proof of-of-stake (PoS) mode.
ETC Group’s new Ethereum ETP relies on a PoW Ethereum chain forked by miners who oppose Ethereum’s switch from PoS. A new token, ETHW, will be added to the PoW chain. This will serve as a base for ETC Group’s physical-backed ETP. It will be called ETC Group Physical EthereumPoW or ETHWetc.
The announcement stated that ETHWetc will list on Deutsche Boerse’s electronic trading platform, Xetra under the ticker symbol ZETW. ETC Group stated that they expect the listing to take place within a few days after the Sept. 16 fork event.
ETC Group announced that ZETW will replace ZETH (original ETC Group Physical Ethereum) at a 1:1 basis on brokerage accounts.
Bradley Duke, co-CEO and founder of ETC Group, stated that the original vision of the firm was to reap the benefits of hard forks of the underlying cryptocurrency. He noted that holders of an Ethereum-based ETP will be able to receive at no cost matching units of the new Ethereum PoWETP shortly after the Ethereum hardfork.
“We believe it is right that investors in our products should be able to receive the proceeds from this fork.”
This news comes as the crypto industry is actively preparing for Ethereum Merge. Many companies are looking for new mining options and launching Ethereum stakes.
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The Swiss-regulated crypto platform SEBA Bank provided Ether (ETH staking services) for institutional investors on Wednesday. According to a statement, clients can earn rewards based upon their Ether holdings monthly. Hive Blockchain, a Canadian crypto miner, announced Tuesday that it is working to replace the mining Ethereum with other mineable coins in case Ethereum moves to PoS.