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- Grayscale said it will invest up to $200 million in repurchase programs for its other six publicly-traded Grayscale products.
- The first buyback will cover up to $50 million in total for shares of Grayscale Litecoin Trust ($30 million), Grayscale Horizen Trust, and Grayscale Zcash Trust.
Grayscale said it will invest up to $200 million in repurchase programs for its other six publicly-traded Grayscale products. Grayscale Bitcoin Cash Trust, Grayscale Bitcoin Trust, Grayscale Large Cap Fund, Grayscale Ethereum Classic Trust, Grayscale Ethereum Trust, Grayscale Ethereum Trust, and Grayscale Stellar Lumen Trust are among them.
The buyback program will cover a wide range of Grayscale’s trust products, according to the company, with the first buyback covering up to $50 million in total for shares of Grayscale Litecoin Trust ($30 million), Grayscale Horizen Trust, and Grayscale Zcash Trust.
Bitcoin Trust into Exchange Traded Fund
The decision to purchase back the six core items may have been motivated by the premiums of these products falling in value, as seen by data from otcnode. While the negative premium is widespread, the Grayscale Ethereum Classic Trust has taken the worst hit, down 59.46% at the time of writing.
Grayscale has contemplated converting the Bitcoin Trust into a full-fledged spot Exchange Traded Fund (ETF) product as part of the business changes. Even though the application has been submitted with the Securities and Exchange Commission (SEC), no response has yet been received.
The fact that other competitors’ applications for a Bitcoin ETF have been rejected by the SEC has cast doubt on Grayscale’s chances of succeeding; however, time is the most important determining factor in obtaining the needed closure about the company’s ambition to attract institutional investors.
While the timing of the share buyback is uncertain, the business stated that it will complement previous permissions it has obtained to purchase shares of GBTC and ETCG, for which DCG has authorized share repurchases of $301.3 million and $4.5 million, respectively.
The stock buyback will be funded using cash on hand, according to the firm, and will be decided at the discretion of the company’s management.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
