The share repurchase program focuses on Grayscale’s Zcash, Litecoin, and Horizon investment products. Grayscale parent Digital Currency Group, also known as DCG, said that it wants to re-acquire around $250 million in shares for different Grayscale investment products.
This share repurchase program focuses on Grayscale’s Litecoin Trust, Horizon Trust, and Zcash Trust, together with other Grayscale products, as highlighted by DCG on March 2, 2022. The timing and pace of the share repurchase are not fixed and they will depend on many factors, “including the levels of cash available, price, and prevailing market conditions,” as said by the company.
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
DCG first announced plans to buy shares of its Grayscale products in March 2021, allocating nearly $250 million towards the flagship GBTC Bitcoin product. Just like the previous share repurchase announcement, DCG’s statement never specified the reasoning behind its latest buyback.
Currently, Grayscale is the biggest crypto asset manager in the world with almost $27 billion in assets under management (AUM), according to the latest data. The value of Grayscale’s holdings has dropped from a peak of nearly $43.6 billion in November, representing a steep pullback in the price of Bitcoin and the wider crypto market.
The institutional investors have now increased their exposure to crypto products in the past year, although their interest has faded in periods of massive market volatility. After a lengthy drawdown, the crypto investment funds seem to be attracting some new capital in recent weeks.
Latest reports show that the inflows into crypto funds reached $36 million in the past week, with Bitcoin products recording five consecutive weekly inflows reaching $239 million, based on data from CoinShares.
