Digital Currency Group (DCG), led by Barry Silbert, said it plans to purchase Grayscale Bitcoin Trust (GBTC) shares worth up to $750 million.
Digital Currency Group Announces Plan to Increase Purchase of Shares of Grayscale Bitcoin Trust (OTCQX: $GBTC)https://t.co/13XQsHpRYt
— Barry Silbert (@BarrySilbert) May 3, 2021
The announced figure is three times the amount announced in March.
According to the report, as of April 30, 2021, DCG had spent $193.5 million on these targets.
The company intends to continue buying GBTC on the open market.
DCG stressed that the decision to purchase at any time could be revised in terms of timing and amount, or even withdrawn. It will depend on available liquidity, the price of Bitcoin and market conditions.
Information about the purchase will be disclosed in GBTC’s Form 10-K and 10-Q filings with the U.S. Securities and Exchange Commission (SEC).
Since February 23, GBTC shares have traded at a discount to Bitcoin’s price. At the time of writing it stood at nearly 10%.
On April 22, GBTC’s premium/discount to NAV reached 18.92%.
In Arcane Research, among the reasons for the discount they named named the emergence of alternative instruments, the launch of bitcoin funds and direct purchases of the first cryptocurrency by individual companies.
Earlier, Canada’s regulator approved a third exchange-traded fund based on the first cryptocurrency (ETF), available to investors including in US dollars. A similar instrument also got listed in Brazil.
Spring 2021: the SEC began considering two ETF applications from WisdomTree and VanEck. In April, the regulator extended the review period for the latter to June 17, 2021.
Grayscale plans to convert GBTC into an exchange-traded fund based on digital gold. In March, the company posted nine job openings related to this initiative.
Grayscale launched five new cryptocurrency funds. The firm filed applications to register six more trusts.
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