Grayscale parent Digital Currency Group plans to buy $250M of its own GBTC shares

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Cryptocurrency asset supervisor Grayscale has a brand new purchaser of shares in its Grayscale Bitcoin Belief (GBTC) — its proprietor.

In a press launch on March 10, Grayscale dad or mum firm Digital Foreign money Group (DCG) announced plans to buy as much as $250 million of GBTC shares.

GBTC to purchase “as much as $250 million” in shares

The transfer, which comes amid risky situations for GBTC, follows plans to hire specialists within the exchange-traded fund (ETF) sphere, signaling a possible diversification by the corporate.

In response to the press launch, DCG “has licensed the acquisition by DCG of as much as $250 million value of shares of Grayscale Bitcoin Belief.”

“DCG plans to make use of money readily available to fund the purchases and can make the purchases on the open market,” it added.

DCG didn’t particularly state the reasoning behind the buyback.

Canada ETFs put the cat among the many pigeons

As Cointelegraph reported, GBTC traded at its steepest-ever discount last week, with investors able to get exposure to Bitcoin (BTC) at 13% beneath market worth.

GBTC premium vs. holdings vs. BTC/USD chart. Supply: Bybt

The regulatory go-ahead for ETFs to launch in Canada is believed to have contributed to Grayscale’s headache, with buyers on the lookout for the perfect worth proposition with regards to embracing the historically risky asset class.

The US has but to license a single ETF, with anticipation nonetheless constructing that regulators will log out on a change to the established order.

“A United States Bitcoin ETF will unleash a wave a of retail shopping for that may bend minds,” Nik Bhatia, creator of Layered Cash: From Gold and {Dollars} to Bitcoin, commented over the weekend. 

“The commerce circulate will obliterate obtainable inventory (provide). The cruel fact about 21 million is that there simply ain’t a lotta BTC on the market.”