The market will decide on post-merger Ethereum ETPs, says crypto executive

The Ethereum merger is set to be one of the biggest events in the cryptocurrency industry, potentially affecting many related organizations and services, and Ethereum-based exchange-traded products (ETPs) are no exception.

ATC Group, a major European crypto ETP issuer, has decided to expand its current Ethereum ETP offering by introducing one more Ethereum investment product. The new ETP is based on ETHW, a new token set to work on Ethereum after a hard fork for Proof of Work (PoW).

The new ZW ETP will launch in March 2021 in addition to the physical Ethereum ETP (ZETH), which is currently listed on Deutsche Börse Xtra. Expected It happens within 24 hours after the fusion.

The merger marks Ethereum’s transition from the popular miner-based PoW consensus method to an eco-friendly proof-of-stake (PoS) system.

While some Ethereum users are willing to continue using the PoW model, a merger could open up Ethereum to two separate blockchains. These mainly include the main PoS-based Ethereum blockchain, which is called ETHPOS and is linked to the main Ether (ETH) token. Another Ethereum network has a new ETHW token with a PoW system, called ETHPOW.

The merger, which is scheduled to happen on September 15, will affect Ethereum-based ETPs: the main asset in the default physical Ethereum ETPs will no longer be based on PoW, but some ETH ETP investors may want exposure to such an asset.

ETC Group CEO and Founder Bradley Duke said the new ETP launch will enable the company to ensure the most transparent and fair approach to investors. With the new ETP, you will automatically receive ZETW tokens on broker accounts in a 1:1 unit of current ZETW tokens.

“We want investors in our products to have the same opportunity as direct holders of any crypto in the event of a fork,” Duke said.

ETC Group sees the merger as a positive development because it supports the green PoS approach, the founder said, adding that the organization is very market-oriented in its approach.

“We feel that if enough people get behind the fork for whatever reason, the free market will decide what should and shouldn’t exist. […] We are not in the business of predicting whether the fork will succeed or not.

According to Duke, the upcoming merger will be the first time for ETC Group to manage a hard fork as part of their crypto ETP offering. Since launching their first centrally cleared Bitcoin ETP in June 2020, ETC Group has listed a total of 14 crypto ETPs on Xetra.

Duke noted that launching a new ETP is not the only option to distribute hard fork proceeds to investors. However, launching the new ETP appears to be a better option for ETC Group as some investors may not want to sell immediately, he said.

“The new ETP looks better because we don’t know what will happen if the ETP succeeds or not. We feel this approach is very accurate,” Duke said.

While ETC Group is moving forward with two separate Ethereum ETPs as a result of the merger, some issuers decided to simply run ETPs on PoS Ethereum.

Related: Ethereum Potential Fork ETHPOW Has Fallen 80% Since Debut – More Pain Ahead?

Cryptocurrency investment firm has announced a PoS fork of their flagship 21Shares Ethereum ETP, which is “expected to be a major version of the network post-merger,” according to Cointelegraph.

Eliezer Ndinga, director of research at, said: “If a hard fork causes an airdrop, 21 shares will sell the money into the relevant products and reinvest to align with the index.” The executive added that “there may be unknown and unforeseen factors” including the lock-in period, and that it may take time for the custodians to fully process the newly sold property and other matters.

“Once any airdrops are announced and the difference is found, 21Shares will provide an update,” Ndinga added.