DCG announces $250M share repurchase for Grayscale products

Grayscale mum or dad Digital Forex 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 should not mounted and can rely on a number of components, “together with the degrees of money out there, value, and prevailing market circumstances,” the corporate stated.

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 didn’t specify the reasoning behind its newest buyback.

Grayscale is the world’s largest crypto asset supervisor with almost $27 billion in belongings underneath administration, in accordance 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.

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

Associated: SEC once more delays resolution on Grayscale’s Bitcoin ETF

Institutional buyers have elevated their publicity to cryptocurrency merchandise over the previous 12 months, although their curiosity has waned during times of maximum market volatility. After a protracted 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 line with CoinShares information.