Grayscale’s parent Digital Currency Group, better known as DCG, announced that it intends to buy back up to $250 million worth of shares for various Grayscale investment products.
The share buyback program is focused on 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 various factors, “including levels of cash on hand, price and prevailing market conditions,” the company said.
Digital Currency Group Announces $250 Million Share Repurchase Program for Grayscale® Litecoin Trust (OTCQX: $LTCN), Grayscale® Horizen Trust (OTCQX: $HZEN), Grayscale® Zcash Trust (OTCQX: $ZCSH), and other Grayscale Products https://t.co/zKoEWkfyk1
— Barry Silbert (@BarrySilbert) March 2, 2022
Digital Currency Group Announces $250 Million Share Buyback Program for Grayscale® Litecoin Trust (OTCQX: $LTCN), Grayscale® Horizen Trust (OTCQX: $HZEN), Grayscale® Zcash Trust (OTCQX: $ZCSH) and Other Products in Grayscale
As Cointelegraph reported, DCG first announced plans to buy shares of its products on Grayscale in March 2021, allocating up to $250 million to GBTC’s flagship Bitcoin (BTC) product.
Like its previous share buyback announcement, DCG on Wednesday did not specify the reasoning behind its latest buyback.
Grayscale is the world’s largest crypto asset manager with almost $27 billion in assets under management, according to the most recent data. The value of Grayscale’s holdings has declined since a high 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, although their interest has waned during periods of extreme market volatility. After a prolonged drawdown, cryptocurrency investment funds appear to be attracting new capital in recent weeks. Inflows into crypto funds totaled $36 million last week, with Bitcoin products posting five consecutive weekly inflows totaling $239 million, according to data from CoinShares.
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