Today, Digital Currency Group (DCG) announced an authorization to purchase $250 million worth of shares in Grayscale Bitcoin Trust (GBTC).
DCG is the parent company of Grayscale Investments, which manages GBTC. But DCG plans to purchase the shares on the open market with cash on hand, but there are few other stipulations that were announced, and the actual total purchase may vary in timing and volume, depending on price and cash available.
The purchase will create indirect exposure to bitcoin for DCG, and is indicative of the group's conviction in its GBTC product.
DCG is a prominent institution investing in blockchain projects, and it has played a key role in accelerating the adoption of digital assets in the traditional financial world. CEO Barry Silbert maintains a lead in enhancing the availability of digital currencies and other digital assets.
“Today, DCG sits at the epicenter of the industry, backing more than 175 blockchain-related companies in over 35 countries,” according to the announcement.
Meanwhile, Grayscale Investments is the largest digital asset manager in the world, with over $42.1 billion assets under management. GBTC is the firm’s primary investment product and is designed to offer institutional exposure to bitcoin. By retaining full compliance with regulators and utilizing the security of existing financial frameworks, GBTC allows investors and firms to enter positions they would otherwise be unable to. And it charges them a premium to do so.
“Grayscale Bitcoin Trust is a traditional investment vehicle with shares titled in the investors name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws,” states the Grayscale website.
The accessibility and security of bitcoin financial instruments is paramount to its commercial adoption, and Grayscale continues to lead the traditional financial world in this important respect.