Grayscale said it will invest up to $200 million in buyback programs for six other publicly traded Grayscale products. The initial buyout will cover a total of $50 million for shares of Grayscale Litecoin Trust ($30 million), Grayscale Horizon Trust and Grayscale Zcash Trust. Here are the details…
Grayscale Horizon Buys Out Litecoin, Trusts Zcash
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.
According to the company, the buyback program will cover a wide range of Grayscale trust products, with an initial buyback of up to $50 million for shares of Grayscale Litecoin Trust ($30 million), Grayscale Horizon Trust and Grayscale Zcash Trust. According to Otcnode, the decision to buy back six major products could have been motivated by the depreciation of their premiums. While a negative premium is a common occurrence, the Grayscale Ethereum Classic Trust fund suffered the most, which at the time of writing fell by 59.46%.
Shades of Grey Continue to Work with ETFs
Grayscale was considering turning Bitcoin Trust into a full-fledged product traded on spot exchanges (ETFs) as part of changes in its business. As we reported to Somanews, despite the fact that the application was sent to the U.S. Securities and Exchange Commission (SEC), no response has yet been received. The fact that other competitors’ applications for bitcoin ETFs were rejected by the SEC casts doubt on Grayscale’s chances of success.
Although the timing of the repurchase of shares is unknown, the business said it would complete previous permits to purchase shares of GBTC and ETCG, for which DCG authorized the repurchase of shares in the amount of $ 301.3 million and $4.5 million, respectively. The share repurchase will be funded with cash in accordance with the firm and will be decided at the discretion of the company’s management.