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Grayscale’s Ethereum Trust Regards ETH 2.0 as a Material Risk
Summary: According to the latest SEC disclosure by the Grayscale Ethereum Trust, or ETHE, the impending transition of Ethereum (ETH) to the proof-of-stake consensus represents a risk that could have a “material adverse effect” on its shares.The ETHE recently filed an application with the regulator to become an SEC-reporting company. Companies of this nature are required to discuss the ...
According to the latest SEC disclosure by the Grayscale Ethereum Trust, or ETHE, the impending transition of Ethereum (ETH) to the proof-of-stake consensus represents a risk that could have a “material adverse effect” on its shares.The ETHE recently filed an application with the regulator to become an SEC-reporting company. Companies of this nature are required to discuss the risk factors that may have an adverse impact on the their performance within all quarterly and annual reports.One section, meant to outline potential risks for the fund's future, outlines that the upgrade to ETH 2.0 may present certain difficulties for investors:“A digital asset network’s consensus mechanism is a material aspect of its source code, and any failure to properly implement such a change could have a material adverse effect on the value of ETH and the value of the Shares.”
Tags: ETH 2.0,Grayscale,risk
Link: Grayscale’s Ethereum Trust Regards ETH 2.0 as a Material Risk [Copy]
