Digital Currency Group, or DCG, Grayscale‘s parent firm, has announced plans to repurchase up to $250 million in shares for Grayscale’s various investment products.
In fact, according to DCG on Wednesday, the Litecoin Trust, Horizon Trust, Zcash Trust. As well as other Grayscale products will be the focus of the share repurchase effort. According to the company, the rate and timing of share repurchases will be determined by a number of criteria. Including “the amount of cash available, the price, and current market circumstances.”
As previously reported, DCG originally announced plans to purchase Grayscale product shares in March 2021. Allocating up to $250 million to the flagship GBTC Bitcoin (BTC) product.
DCG did not provide any additional information on the reasons for its latest share repurchase announcement. As it did with its previous one.
According to the most recent data, Grayscale is the largest crypto asset manager in the world. Managing almost $27 billion in assets. Grayscale’s assets have lost value since peaking at about $43.6 billion in November. Reflecting a steep drop in Bitcoin and the larger cryptocurrency market.
Institutional investors have increased their exposure to cryptocurrency products over the last year. But their enthusiasm has waned during periods of high market volatility. Following a protracted period of decline, crypto investment funds appear to be attracting new funding in recent weeks. Crypto funds saw $36 million in inflows last week, according to CoinShares data. With Bitcoin products getting $239 million in five consecutive weekly inflows.