Digital Currency Group (DCG), the parent company of the world’s largest Bitcoin trust, Grayscale Bitcoin Trust (GBTC) has announced plans to buy a quarter million worth of shares of GBTC.
DCG will purchase the shares on the open market through its cash on hand fund over an unspecified period of time that will also determine how many shares the company will end up acquiring.
“The actual timing, amount and value of share purchases will depend entirely upon a number of factors, including the levels of cash available, price and prevailing market conditions.”
Institutional Investors and Discounted BTC
Grayscale has become the leading one-stop digital assets shop for institutional investors as it allows them to indirectly gain exposure to bitcoin and other digital assets.
The firm charges a premium for all its digital asset products including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Stellar, to cover the risks associated with crypto custody such as price volatility and crypto funds security.
Grayscale’s GBTC is the biggest of its trusts and owns 649,130 BTC currently valued at over $36.6 billion. It also represents 0.03% of the total 18,650,081 BTC in circulation, according to data by CoinMarketCap.
GBTC is also over-the-counter security registered with OTC Markets Group (OTCQX), a top-tier marketplace for trading over-the-counter stocks. OTC Markets requires companies to meet high financial standards, demonstrate compliance with the US SEC securities laws and follow the best practice corporate governance.
Last month, a sharp retracement in the price of Bitcoin led to a major sell-off of GBTC shares, …
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