Grayscale, a leading global digital asset management company, has decided to expand its review of tokens from the former Proof-of-Work (PoW) system, despite initially planning to sell ETHPoW after the Ethereum upgrade in September 2022.

Ethereum’s move from PoW to Proof of Stake (PoS) consensus mechanism is necessary. It is energy efficient and more secure, and allows for the deployment of new scaling solutions.

The review extension is expected to last 180 days, during which Grayscale will determine the feasibility of selling the asset ETHPoW after the merger. The company is motivated to conduct this review due to environmental issues surrounding PoW, which requires high energy consumption levels to verify transactions.

In addition, the company is concerned about the uncertainty of trading venues and custodians of crypto assets. Ethereum PoW tokens have not yet established trading venues. This sends a clear signal to the entire industry. No one wants to participate in a project that has no future.

According to Grayscale’s announcement, the price of ETHPoW could fluctuate if crypto asset custodians support the token. It is not in their best interest to support a dying asset.

The review is a necessary step for Grayscale to adopt PoS. After all, the asset management company holds a large amount of Ether in its Grayscale Ethereum Trust. In addition, other important institutions may also reconsider their stance on the PoW system.

However, some community members preferred the PoW model of mining system. This led to the network forking into two blockchains - EthereumPoW and the main Proof of Stake network.

While ETHW is beneficial for those who like to mine through the system, it is challenging for digital asset companies that only provide exposure to Ethereum. Some investors may want exposure to ETHPoW. It is difficult to gain common sense when money is at stake.

Meanwhile, some companies plan to offer a new exchange-traded product (ETP) to facilitate investors’ exposure to ETHPoW. Nevertheless, given the uncertainty of its sustainability, the new ETP will serve as a backbone for ETHW.

Grayscale’s censorship-resistant expansion is seen as a positive step for Ethereum and the cryptocurrency industry as a whole.

Over time, adoption of this consensus mechanism by important institutions such as Grayscale is likely to increase.