Grayscale parent company expands GBTC purchase allocation to US$1 billion

According to the announcement issued on Wednesday, DCG now has the right to purchase The Grayscale Bitcoin Trust (GBTC) worth up to 1 billion US dollars.

If DCG chooses to do so, this development will extend DCG’s prior authorization by $250 million. In fact, according to the company’s announcement on Wednesday, DCG has purchased $338 million in GBTC so far.

As previously reported by Cointelegraph, DCG has Purchased $193.5 million worth of GBTC stock As early as May 2021. At that time, the company’s GBTC purchase limit was $250 million.

As part of the announcement, DCG revealed that it plans to use cash on hand to facilitate purchases on the open market in accordance with Article 10b-8 of the Transaction Law.

DCG’s announcement followed Grayscale’s plan to convert its GBTC products into Bitcoin (Bitcoin) Exchange-traded funds (ETF).

However, such plans depend on whether the US Securities and Exchange Commission (SEC) has softened its position on Bitcoin ETFs.

related: Grayscale confirmed the Bitcoin ETF plan and added exposure to Zcash, Stellar Lumens and Horizen in its trust

SEC Chairman Gary Gensler has already expressed support BTC-related ETFs backed by Bitcoin futures Rather than those based on the spot price of cryptocurrencies.

Gensler’s comments are part of the comments made by the Chairman of the US Securities and Exchange Commission on the issues raised by ProShares’ Bitcoin Strategy ETF, which became history on Tuesday The first BTC-related ETF launched in the U.S. market.

In addition to future Bitcoin ETF plans, Grayscale has also added more cryptocurrencies to its investment product catalog.

In early October, Zcash (ZEC), Stellar Lumens (XM) and Horizen (ZEN) became the newest members of the company’s altcoin trust suite.

Digital Currency Group (DCG), the parent company of Grayscale Investment, has expanded its purchase allocation for the former’s bitcoin trust products.