HomeBitcoin UpdateDCG broadcasts $250M share repurchase for Grayscale merchandise

DCG broadcasts $250M share repurchase for Grayscale merchandise


Grayscale mother or father Digital Forex Group, higher referred to as DCG, introduced that it intends to repurchase as much as $250 million in shares for varied Grayscale funding merchandise.

The share repurchase program is centered round Grayscale’s Litecoin Belief, Horizon Belief, Zcash Belief and different Grayscale merchandise, DCG confirmed on Wednesday. The tempo and timing of the share repurchase are usually not fastened and can rely upon a number of elements, “together with the degrees of money out there, worth, and prevailing market situations,” the corporate said.

As Cointelegraph reported, DCG first introduced plans to buy shares of its Grayscale merchandise in March 2021, allocating as much as $250 million in the direction of the flagship GBTC Bitcoin (BTC) product.

Like its earlier share repurchase announcement, DCG’s Wednesday assertion didn’t specify the reasoning behind its newest buyback.

Grayscale is the world’s largest crypto asset supervisor with practically $27 billion in belongings below administration, according to the most recent knowledge. The worth of Grayscale’s holdings has declined from a peak of round $43.6 billion in November, reflecting a pointy pullback within the worth of Bitcoin and the broader cryptocurrency market.

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The worth of Grayscale funding merchandise has declined from their peak in November 2021. Supply: YCharts

Associated: SEC again delays decision on Grayscale’s Bitcoin ETF

Institutional traders have elevated their publicity to cryptocurrency merchandise over the previous 12 months, although their curiosity has waned in periods of maximum market volatility. After a chronic drawdown, crypto funding funds look like attracting new capital in current weeks. Inflows into crypto funds totaled $36 million final week, with Bitcoin merchandise registering 5 consecutive weekly inflows totaling $239 million, in keeping with CoinShares knowledge.