In the face of persistent negative premiums for these assets, Digital Currency Group (DCG) has announced its intention to buy back $250 million in shares of various Grayscale Crypto Trusts.

The $250 million repurchase plan is divided into two different buybacks. The initial repurchase includes shares of Grayscale Litecoin Trust ($30 million), Grayscale Horizen Trust, and Grayscale Zcash Trust worth up to $50 million in total.

Barry Silbert expressed:  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.

The remaining $200 million might be used to repurchase any of Grayscale’s six publicly listed products, including its flagship Grayscale Bitcoin Trust (GBTC).

DCG initially announced plans to acquire shares of its Grayscale goods in March 2021, dedicating up to $250 million to the flagship GBTC Bitcoin (BTC) product.

DCG’s Wednesday statement, like its prior share repurchase announcement, made no mention of the rationale for the new buyback.

According to the most recent statistics, Grayscale is the world’s biggest crypto asset manager, with almost $27 billion in assets under management. Grayscale’s assets have lost value since peaking at about $43.6 billion in November, owing to a steep drop in Bitcoin and the larger cryptocurrency market.

Institutional investors have increased their exposure to crypto goods over the past year, but their excitement has waned during moments of high market volatility. After a protracted decline, crypto investment funds seem to be attracting fresh cash in recent weeks. According to statistics, inflows into crypto funds topped $36 million last week, with Bitcoin products posting a five-week streak of $239 million inflows.

A Brief Description of The Digital Currency Group

DCG is the most active investor in the blockchain industry, having been founded in 2015 with the goal of accelerating the creation of a better financial system via the spread of digital assets and blockchain technology.

DCG is now at the heart of the sector, investing in over 200 blockchain-related businesses across 35 countries. DCG also makes direct investments in cryptocurrencies and other digital assets. DCG is the parent company of Genesis (a global digital asset prime brokerage), Grayscale Investments (the largest digital currency asset manager), CoinDesk (a leading financial media, data, and information company), Foundry (a leader in bitcoin mining and staking), Luno (a leading cryptocurrency platform with a large international footprint), and TradeBlock (a leading cryptocurrency platform with a large international footprint) (a significant supplier of cryptocurrency trading tools and analytics for institutional investors).