Grayscale’s share repurchase program is focused on its Litecoin, Zcash, and Horizon investment products.
Grayscale’s parent company, Digital Currency Group, or DCG, announced plans to buyback up to $250 million in Grayscale investment products.
Grayscale’s Litecoin Trust, Horizon Trust, Zcash Trust, and other Grayscale products are the focus of the share repurchase program, DCG revealed on Wednesday. The business said the pace and timing of the share repurchases are not fixed and will be determined by a number of factors, including “the amount of cash available, the price, and existing market circumstances.”
Digital Currency Group Announces $250 Million Share Repurchase Program for Grayscale® Litecoin Trust (OTCQX: $LTCN), Grayscale® Horizen Trust (OTCQX: $HZEN), Grayscale® Zcash Trust (OTCQX: $ZCSH), and other Grayscale Products https://t.co/zKoEWkfyk1
— Barry Silbert (@BarrySilbert) March 2, 2022
As previously reports, DCG first announced plans to acquire Grayscale shares in March 2021, dedicating up to $250 million to the company’s flagship GBTC Bitcoin (BTC) product.
As with its prior announcement of a share repurchase, DCG’s Wednesday statement made no mention of the rationale for the latest buyback.
Grayscale is the world’s largest crypto asset manager, according to the latest figures, with approximately $27 billion in assets under management. Grayscale’s assets have decreased in value from a November high of about $43.6 billion, reflecting a dramatic slump in the price of Bitcoin and the larger cryptocurrency market.
Over the last year, institutional investors boosted their exposure to cryptocurrency products, albeit their enthusiasm faded during periods of significant market volatility. Following a prolonged period of decline, crypto investment funds appear to be reviving in recent weeks. According to CoinShares data, crypto fund inflows totaled $36 million last week, with Bitcoin products reporting five consecutive weekly inflows totaling $239 million.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
