Grayscale mum or dad Digital Foreign money Group, higher referred to as DCG, introduced that it intends to repurchase as much as $250 million in shares for numerous 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 depend upon a number of components, “together with the degrees of money accessible, value, and prevailing market circumstances,” the corporate stated.
Digital Foreign money Group Broadcasts $250 Million Share Repurchase Program for Grayscale® Litecoin Belief (OTCQX: $LTCN), Grayscale® Horizen Belief (OTCQX: $HZEN), Grayscale® Zcash Belief (OTCQX: $ZCSH), and different Grayscale Merchandise https://t.co/zKoEWkfyk1
— Barry Silbert (@BarrySilbert) March 2, 2022
As Cointelegraph reported, DCG first introduced plans to buy shares of its Grayscale merchandise in March 2021, allocating as much as $250 million in direction of the flagship GBTC Bitcoin (BTC) product.
Like its earlier share repurchase announcement, DCG’s Wednesday assertion did not specify the reasoning behind its newest buyback.
Grayscale is the world’s largest crypto asset supervisor with almost $27 billion in belongings beneath administration, in response to the most recent information. The worth of Grayscale’s holdings has declined from a peak of round $43.6 billion in November, reflecting a pointy pullback within the value of Bitcoin and the broader cryptocurrency market.
Associated: SEC once more delays choice on Grayscale’s Bitcoin ETF
Institutional traders have elevated their publicity to cryptocurrency merchandise over the previous yr, although their curiosity has waned in periods of maximum market volatility. After a chronic drawdown, crypto funding funds seem 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 response to CoinShares information.