Bitcoin News

Grayscale Features New Buyer Of Shares In Its GBTC.

Leading crypto asset manager Grayscale features a new buyer of shares in its Grayscale Bitcoin Trust [GBTC] – its owner.

Within an official update on 10th March, Grayscale parent company ‘DCG’ Digital Currency Group revealed its plans to buy around $250 Mln of GBTC shares.

The move, that comes amid volatile conditions for GBTC, follows plans to hire specialists within the ETF [Exchange -traded Fund] sphere, signaling a possible diversification by the firm.

In line with the update, DCG “has authorized the acquisition by DCG of up to $250 Mln worth of shares of Grayscale Bitcoin Trust.”

“DCG plans to use cash available to fund the purchases and can make the purchases on the open market,” it explained.

DCG didn’t specifically state the reasoning behind the buyback.

As reported earlier, GBTC traded at its steepest-ever discount last week, with investors able to get exposure to Bitcoin [BTC] at 13% below market price.

Grayscale Features New Buyer Of Shares In Its GBTC.

The regulatory go-ahead for ETFs to launch in Canada is assumed to possess contributed to Grayscale’s headache, with investors trying to find the simplest value proposition when it involves embracing the traditionally volatile asset class.

The U.S. has yet to license one ETF, with anticipation nonetheless building that regulators will log off on a change to the established order.

“A U.S. Bitcoin ETF will unleash a wave of retail purchasing which will bend minds,” Nik Bhatia, author of Layered Money: From Gold and Dollars to Bitcoin, commented over the weekend.

“The trade flow will obliterate available stock [supply]. The tough truth about 21 Mln is that there just ain’t a lotta BTC purchasable.”

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