The investment trust funds of Ethereum Classic are "not at risk", say the investments in grayscale

Grayscale Investments, the organization behind the Ethereum Classic Investment Trust (ETCG), a financial product that tracks the price of Ethereum Classic (ETC), recently declared to "fewer" investors that product funds are not at risk.

The gray scale responded to e-mails from customers who expressed concerns about their investments, in light of the recent 51% attack on ETCs. According to CoinDesk, the company responded to its investors through an e-mail, which was not sent to all those who have invested money in the fund.

In the e-mail, product development and Grayscale's research collaborator, Matt Beck reported that 51% of the attacks work and noted that ETC Trust funds "are not at direct risk of theft or double expense ". He has declared:

The major risk that this entails is the integrity of the Ethereum Classic network, since people may be less inclined to accept ETCs given the greater risk of double spending. However, coins inside the ETC Trust are not at direct risk of theft or double spending.

Beck went on to quote the developer of Vertcoin Gert-Jaap Glasergen, who had previously noted that double spending attacks can only be done with the own coins of the attacker, not those of someone else, which means the Real risk is for those who accept ETCs for goods or services, such as exchanges.

As covered by CryptoGlobe, the exchange of cryptocurrencies Gate.io had to suffer a loss of more than $ 200,000 due to the attack, since at the time the transactions took place they appeared to be legitimate and were confirmed on the cryptocurrency blockchain .

Grayscale CEO Michael Sonnenshein told CoinDesk that the company has received requests from "some investors" about the 51% attack on the ETC network and that in response it has sent investors "information publicly available that explain how these attacks occur. "

As of December 31, the Ethereum Classic Investment Trust had approximately $ 24.9 million under management. Grayscale manages these paid funds, allowing institutional investors to gain visibility on the cryptocurrency ecosystem without having to manage the cryptos themselves. The price of ETCG replicates that of ETC.

It is worth noting that both CoinDesk and grayscale investments are owned by the Digital Currency Group (DCG), whose proprietary tweets on ETC have raised concerns in the past.