Digital asset-backed securities provider the Etc Group has said it will list an exchange-traded product (ETP) based on an anticipated hard fork of the Ethereum blockchain on September 15. Current holders of Etc Group’s ethereum ETP (ZETH) will be issued with “units of the new security free of charge on a 1:1 unit basis.”
Ethereum Hard Fork
The Etc Group, a provider of institutional-grade digital asset-backed securities, has said it will list a new exchange-traded product (ETP) based on a hard fork of the Ethereum blockchain that is likely to occur after the so-called “Merge.” According to a statement issued by the securities provider, the ETP will be listed on the German exchange Xetra on September 16, a day after the forking event.
As outlined in the securities provider’s statement, holders of Etc Group’s current ethereum ETP (ZETH) will be issued with “units of the new security free of charge on a 1:1 unit basis.” The statement explained that the new units will be “in addition to their existing ZETH holdings which will persist and be backed by ETH as before.”
As the Ethereum blockchain’s anticipated switch from a proof-of-work (PoW) to proof-of-stake (PoS) consensus mechanism approaches, a number of crypto experts believe The Merge will see some “miners forking ETH to keep a PoW version so they can continue mining.” As a consequence, current ETH holders will likely receive airdrops of a new altcoin called ETHW.
Explaining the reasons behind the Etc Group’s plan to list the ETP, the organization’s founder and co-CEO, Bradley Duke, said:
“When we launched Etc Group, we committed to holders of our digital asset-backed securities that they would benefit from hard forks to the underlying digital assets and cryptocurrencies. In line with this and our demonstrated leadership of the digital asset industry, any holders of our Ethereum-based ETP (ZETH) will receive, at no cost, matching units of the new Ethereum PoW ETP soon after the Ethereum Hard Fork occurs, which we’re expecting around September 15.”
Before announcing plans to list the new ETP, the Etc Group had released a research report explaining The Merge and what will likely happen after September 15. The fate of ETH miners as well as the forked chain’s chances of succeeding are also examined.
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Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.
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