A U.S. investment firm founded by Barry Silbert, the entrepreneur and bitcoin advocate who founded Grayscale Investments, is expanding its limit for how much it will buy per day of the Bitcoin Investment Trust. The Digital Currency Group (DCG) is planning to raise its limit by $500 million and to allow purchases of as much as $1 billion in the trust, which is the only publicly traded structured product that invests solely in bitcoin. The new limit will be in effect for at least one year. “It is intended for the accretion of more bitcoin to the trust,” said Grayscale in a statement on the firm’s website. “After one year, the
Grayscale Investments, the company behind the Bitcoin Investment Trust (GBTC), has announced that it is increasing the limit for shares it can purchase on behalf of its GBTC shareholders from $20 million to $30 million per week. The subsidiary of Digital Currency Group, which also controls the Bitcoin exchange Coinbase and the ethereum-based platform Ethereum Classic, hopes to use the new funds to buy more shares of GBTC, which trades at a whopping premium to bitcoin itself, and which can only be acquired by investing in GBTC.
Digital Currency Group, the parent company of digital asset manager Grayscale Investments, is now authorized to purchase up to $750 million in shares of Grayscale Bitcoin Trust (GBTC).
On Monday, the company announced that DCG had increased its earlier authorization to buy GBTC shares by up to $250 million to raise a further $500 million.
The share purchase authorization does not obligate DCG to purchase a specific number of shares in a specific time period and may be renewed, modified or terminated at any time, DCG said. Actual purchases will depend on many factors, including the amount of cash available and market prices and conditions, the company said.
DCG noted that the company had up to 30. April 2021 GBTC had purchased shares with a total value of $193.5 million. GDC intends to use the cash to fund the purchases and will do so at management’s discretion in accordance with Rule 10b-18 of the Securities Act, the company said.
The news comes shortly after DCG announced in March that it would buy GBTC shares for up to $250 million. The move came amid volatility for GBTC and plans to recruit talent to exchange-traded funds, a sign of potential diversification for the company.
GBTC was launched in 2013 as the Bitcoin Investment Trust and is the largest Bitcoin fund in the world. It allows investors to access Bitcoin (BTC) through a publicly traded private trust. On the 30th. In April, the GBTC trust had more than $36 billion in assets under management and Grayscale had total assets of $46.7 billion. Grayscale’s total assets reached $50 billion in mid-April, when bitcoin reached an all-time high, surpassing $64,000.
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