Digital asset manager Grayscale Investments has extended the review period for the distribution of ETHPoW tokens to shareholders for its Grayscale Ethereum Trust (OTCQX:ETHE) and Grayscale Digital Large Cap Fund (OTCQX:GDLC) products.
The company had previously sought to act as an agent for token equity holders and to sell them as soon as possible within 180 days of the equity registration date on September 16, 2022. However, Grayscale announced today that it will continue to assess the market environment and explore alternative solutions for distributing tokens to shareholders.
Grayscale’s funds and products passively acquired the forked ETHPoW token last year, and the company filed with U.S. regulators for the right to sell the tokens and distribute the cash proceeds to shareholders.
At the time, the Grayscale Ethereum Trust held over 3 million ETHPoW tokens, while the Grayscale Digital Large Cap Fund held 40,000 tokens.
The extended review period is designed to determine whether the company can acquire ETHPoW tokens, and if so, when and how they will be sold on behalf of shareholders.
The review period is not expected to exceed 180 days from the date the agreement is signed. Grayscale has not disclosed any details about a potential solution for distributing tokens, but it continues to explore options to benefit its shareholders.
The decision to extend the review period was made after careful consideration of the market environment and potential impact on shareholders. Grayscale Investments remains committed to providing its investors exposure to digital assets and continues to monitor the market closely for opportunities to enhance its offerings.
Grayscale’s decision to extend the review period for the ETHPoW token distribution reflects its commitment to exploring alternative solutions for the benefit of shareholders.