DCG, Facing Competition From Bitcoin ETFs, Plans to Buy More Grayscale Bitcoin Trust

Coinbase
DCG, Facing Competition From Bitcoin ETFs, Plans to Buy More Grayscale Bitcoin Trust
Coinbase



Digital Currency Group (CoinDesk’s parent company) is planning to hoover up to a billion dollars worth of Grayscale Bitcoin Trust (GBTC).

With subsidiary Grayscale’s flagship product facing sudden competition for brokerage accounts’ bitcoin dollars, the crypto conglomerate increased its GBTC buy range by $250 million, DCG announced Wednesday. It said it has bought $388 million shares of GBTC so far.The authorization comes as bitcoin-curious mainstream investors look beyond Grayscale for crypto exposure. On Tuesday, ProShares, a Wall Street fund shop, launched the first bitcoin futures-linked exchange-traded fund (ETF) in the U.S. The ETF (NYSE: BITO) closed the day with $570 million in assets.GBTC, meanwhile, ended Tuesday at a 16.55% discount relative to the price of bitcoin after that figure hit a five-month low of 20.5% on Monday. The trust has its own plans to become an ETF, a conversion unlikely to happen any time soon.



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