{"id":58480,"date":"2022-03-03T13:07:27","date_gmt":"2022-03-03T11:07:27","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=58480"},"modified":"2025-09-04T17:00:59","modified_gmt":"2025-09-04T14:00:59","slug":"dcg-to-buy-back-grayscale-crypto-trust-shares-worth-250-million","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/dcg-to-buy-back-grayscale-crypto-trust-shares-worth-250-million\/","title":{"rendered":"DCG to buy back Grayscale crypto-trust shares worth $250 million"},"content":{"rendered":"<p>Digital Currency Group (DCG) has announced plans to repurchase Grayscale trust shares worth $250 million. The decision comes amid persistent discounts to the trading prices of the subsidiary&#8217;s products.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Digital Currency Group Announces $250 Million Share Repurchase Program for Grayscale\u00ae Litecoin Trust (OTCQX: <a href=\"https:\/\/twitter.com\/search?q=%24LTCN&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$LTCN<\/a>), Grayscale\u00ae Horizen Trust (OTCQX: <a href=\"https:\/\/twitter.com\/search?q=%24HZEN&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$HZEN<\/a>), Grayscale\u00ae Zcash Trust (OTCQX: <a href=\"https:\/\/twitter.com\/search?q=%24ZCSH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ZCSH<\/a>), and other Grayscale Products <a href=\"https:\/\/t.co\/zKoEWkfyk1\">https:\/\/t.co\/zKoEWkfyk1<\/a><\/p>\n<p>\u2014 Barry Silbert (@BarrySilbert) <a href=\"https:\/\/twitter.com\/BarrySilbert\/status\/1499025022723268609?ref_src=twsrc%5Etfw\">March 2, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The programme will cover the fund shares based on Litecoin ($30 million), Horizen ($10 million), Zcash ($10 million). Up to $200 million could be directed toward repurchasing shares of six additional publicly traded Grayscale products:<\/p>\n<ul class=\"wp-block-list\">\n<li>Bitcoin Trust (GBTC);<\/li>\n<li>Bitcoin Cash Trust (BCHG);<\/li>\n<li>Ethereum Trust (ETHE);<\/li>\n<li>Ethereum Classic Trust (ETCG);\u00a0\u00a0\u00a0<\/li>\n<li>Stellar Lumens Trust (GXLM);<\/li>\n<li>Digital Large Cap (GDLC).<\/li>\n<\/ul>\n<p>The board of DCG&#8217;s decision increases the previously approved buyback limits for GBTC and ETCG, with outstanding balances of $301.3 million and $4.5 million respectively.<\/p>\n<p>According to otcnode, at least six of the trusts included in the buyback programme trade at a negative premium. This means the funds&#8217; shares trade below the market prices of the underlying assets. The largest discount is for ETCG (-59%), while GBTC stands at -17%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/-XmJnD5dfUGj4dH6JhTsZPQa4qJZjoJcRprxwVR0XZjQ_jtBRPQcQe2lkK7vYz458CIZ-2qgvKxb-1qw8MW-ZcOsM2fDSNKVtwBwVrLzPFqSy5j9Q-eh5E6d1h5ZR_MtVIRDmRru\" alt=\"DCG to buy back Grayscale crypto-trust shares for $250 million\"\/><figcaption>Source: otcnode.<\/figcaption><\/figure>\n<p>In October 2021, Grayscale filed an application with the <span data-descr=\"Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> to convert its Bitcoin Trust into a spot ETF.<\/p>\n<p>Analysts were skeptical about its chances of approval, noting the persistent discount to the fund&#8217;s shares as one reason.<\/p>\n<p>In February 2022, the regulator postponed a decision on Grayscale&#8217;s Bitcoin ETF prospectus.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Digital Currency Group (DCG) announced plans to repurchase Grayscale trust shares worth $250 million. The decision comes amid persistent discounts to the trading prices of the subsidiary&#8217;s products.<\/p>\n","protected":false},"author":1,"featured_media":58481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[184,943,1156],"class_list":["post-58480","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-dcg","tag-grayscale-investments","tag-institutional-investors-and-whales"],"aioseo_notices":[],"amp_enabled":true,"views":"18","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58480","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=58480"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58480\/revisions"}],"predecessor-version":[{"id":58482,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/58480\/revisions\/58482"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/58481"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=58480"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=58480"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=58480"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}