Grayscale said it will invest up to $200 million in buyback programs for six other publicly traded Grayscale products. The initial repurchase will cover a total of $50 million for shares of the Grayscale Litecoin Trust ($30 million), Grayscale Horizen Trust, and Grayscale Zcash Trust. Here are the details…
Grayscale Horizen, Litecoin undertakes buyback in Zcash trusts
Grayscale said it will invest up to $200 million in buyback programs for six other publicly traded Grayscale products. These include Grayscale Bitcoin Cash Trust, Grayscale Bitcoin Trust, Grayscale Large Cap Fund, Grayscale Ethereum Classic Trust, Grayscale Ethereum Trust, Grayscale Ethereum Trust, and Grayscale Stellar Lumen Trust.
Buyback program by company, with initial buyback for Grayscale Litecoin Trust ($30 million), Grayscale Horizen Trust, and Grayscale Zcash Trust shares totaling up to $50 million will cover a wide range of Grayscale trust products. The decision to repurchase six core items may have been motivated by the depreciation of their premiums, according to Otcnode data. While the negative premium is common, the Grayscale Ethereum Classic Trust took the worst hit, down 59.46 percent at the time of writing.
Grayscale continues ETF effort
Grayscale has considered converting the Bitcoin Trust into a full-fledged Spot Exchange Traded Fund (ETF) product as part of its business changes. As Cryptokoin.com also reported, although the application was submitted to the US Securities and Exchange Commission (SEC), no response has been received yet. The fact that other competitors’ Bitcoin ETF applications have been rejected by the SEC has cast doubt on Grayscale’s chances of success.
While the timing of the share repurchase is uncertain, the entity has repurchased shares of GBTC and ETCG for which DCG authorizes $301.3 million and $4.5 million, respectively. He stated that he will complete the previous permissions to buy the shares. Share repurchase will be financed using cash on hand according to the firm and will be decided at the discretion of company management.
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