Home News The parent firm of Grayscale has increased its GBTC purchase authorization to...

The parent firm of Grayscale has increased its GBTC purchase authorization to $1 billion

158
0

DCG’s purchase authorization for the Grayscale Bitcoin Trust has been extended by $250 million as a result of the new allotment.

Presently, DCG acquired authorization to buy up to $1 billion worth of Grayscale Bitcoin Trust, as per a statement released on Wednesday (GBTC).

If DCG chooses, they can extend their prior permission by $250 million as a result of this development. According to DCG’s statement on Wednesday, the corporation has already purchased $338 million in GBTC.

The Securities and Exchange Commission (SEC) of the United States is responsible for such plans

As already reported DCG acquired $193.5 million worth of GBTC shares in May 2021. The firm’s GBTC buying limit at the time was $250 million.

DCG announced as part of the statement that it intends to use cash reserves to assist open market purchases under the rules of Rule 10b-8 of the Exchange Act.

Grayscale recently announced plans to transform its GBTC product into a Bitcoin (BTC) exchange-traded fund, prompting DCG’s proposal (ETF).

Those plans, although, are contingent on the Securities and Exchange Commission (SEC), modifying its stance on Bitcoin ETFs.

Gary Gensler commented about the first Bitcoin-linked ETF

Gary Gensler, the head of the Securities and Exchange Commission, has already come out in favour of BTC-related ETFs supported by Bitcoin futures instead of those based on the cryptocurrency’s spot price.

Gensler’s words were part of the SEC chairman’s remarks on concerns expressed about ProShares’ Bitcoin Strategy ETF. Which became the first BTC-related ETF to launch in the United States on Tuesday.

Grayscale has introduced more cryptocurrencies to its investment portfolio, in addition to its future Bitcoin ETF ambitions.

Zcash (ZEC), Stellar Lumens (XM), and Horizen (ZEN) are now part of the company’s portfolio of cryptocurrency trusts. Digital Currency Group (DCG), Grayscale Investment’s parent business, has increased its purchasing commitment for the latter’s Bitcoin Trust product.

Previous articleAnimoca Brands raised $65M at a valuation of $2.2B
Next article$2.2T asset manager PIMCO plans to buy more crypto