According to an announcement made on Wednesday, DCG is now eligible to buy up to $ 1 billion worth of Grayscale Bitcoin Trust (GBTC).
This development will extend DCG’s pre-approval by $ 250 million if it chooses. In fact, DCG has so far bought GBTC $ 338 million, the company announced on Wednesday.
As Cointelegraph previously reported, DCG bought GBTC shares worth $ 193.5 million in May 2021. At the time, the company’s GBTC purchase limit was $ 250 million.
As part of the announcement, DCG announced that it intends to use cash to facilitate purchases in the open market in accordance with the provisions of Rule 10b-8 of the Stock Exchange Act.
DCG’s announcement follows Grayscale’s plan to convert its GBTC product into a Bitcoin Exchange Traded Fund (BTC) (ETF).
Such plans, however, depend on the US Securities and Exchange Commission (SEC) softening its stance on a Bitcoin ETF.
Related: Grayscale confirms Bitcoin ETF plans and adds visibility to Zcash, Stellar Lumens and Horizen
SEC chairman Gary Gensler has spoken out in favor of BTC-related ETFs backed by Bitcoin futures versus those based on the spot price of the cryptocurrency.
Gensler’s comments are part of the SEC chairman’s comments on the issues raised in relation to the ProShares Bitcoin Strategic ETF, which made history on Tuesday as the first BTC-related ETF to launch in the U.S. market.
In addition to future Bitcoin ETF plans, Grayscale has also expanded its portfolio of investment products to include other cryptocurrencies.
In early October, Zcash (ZEC), Stellar Lumens (XM), and Horizen (ZEN) became the latest additions to the company’s altcoin trust set.
Grayscale Investment’s parent company, Digital Currency Group (DCG), previously expanded its purchase allocation to include the Bitcoin Trust product.