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Grayscale parent company expands GBTC purchase allocation to $1 billion

According to an announcement issued on Wednesday, DCG is now approved to buy up to $1 billion value of Grayscale Bitcoin Trust (GBTC).

This growth extends DCG’s prior authorization by $250 million if they select to accomplish that. Indeed, DCG has up to now bought $338 million in GBTC, in accordance to the company’s announcement on Wednesday.

As beforehand reported by Cointelegraph, DCG had bought $193.5 million value of GBTC shares again in May 2021. At the time, the agency’s GBTC purchase restrict stood at $250 million.

As a part of the announcement, DCG revealed that it plans to use money readily available to facilitate the purchase on the open market below the provisions enshrined in Rule 10b-8 of the Exchange Act.

DCG’s announcement comes on the heels of plans by Grayscale to convert its GBTC product to a Bitcoin (BTC) exchange-traded fund (ETF).

However, such plans depend upon the United States Securities and Exchange Commission (SEC) softening its stance on Bitcoin ETFs.

Related: Grayscale confirms Bitcoin ETF plans and provides publicity to Zcash, Stellar Lumens and Horizen to its trusts

SEC chairman Gary Gensler has already spoken in favor of BTC-related ETFs backed by Bitcoin futures reasonably than these based mostly on the spot value of the cryptocurrency.

Gensler’s feedback had been a part of SEC chairman’s remarks on points raised in regards to the ProShares’ Bitcoin Strategy ETF that made historical past on Tuesday as the primary BTC-related ETF to launch within the U.S. market.

Apart from its future Bitcoin ETF plans, Grayscale has additionally added extra cryptocurrencies to its catalog of funding merchandise.

Earlier in October, Zcash (ZEC), Stellar Lumens (XM), and Horizen (ZEN) turned the most recent additions to the agency’s suite of altcoin trusts.

Grayscale Investment’s parent company — Digital Currency Group (DCG) — has prolonged its purchase allocation for the previous’s Bitcoin Trust product.

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