Digital Currency Group To Repurchase Up To $250M In Shares For Various Grayscale Investment Products
It has been reported that the share repurchase program is centered around Grayscale’s Litecoin Trust, Horizon Trust, Zcash Trust, and other Grayscale products, DCG confirmed on Wednesday. The pace and timing of the share repurchase are not fixed and will depend on several factors, “including the levels of cash available, price, and prevailing market conditions.”
However, DCG first announced plans to purchase shares of its Grayscale products in March 2021, allocating up to $250 million towards the flagship GBTC Bitcoin (BTC) product.
The report said that the value of Grayscale’s holdings has declined from a peak of around $43.6 billion in November, reflecting a sharp pullback in the price of Bitcoin and the broader cryptocurrency market. Institutional investors have increased their exposure to cryptocurrency products over the past year, though their interest has waned during periods of extreme market volatility.
Thus, after a prolonged drawdown, crypto investment funds appear to be attracting new capital in recent weeks. Inflows into crypto funds totaled $36 million last week, with Bitcoin products registering five consecutive weekly inflows totaling $239 million.