Despite the huge crash in crypto prices, institutional players are still buying crypto. One of those active in the market is Digital Currency Group, the company behind Grayscale.
DCG has announced that it was looking to approve the purchase of $50 million worth of Ethereum Classic Trust shares. In a press release published yesterday, DCG stated that it intends to do so per the securities laws.
This is not the first time that the Digital Currency Group is making multi-million crypto purchases. In March, it gave the nod for the Grayscale Bitcoin Trust valued at $250 million. It later doubled down on it with an investment worth $750 million.
The interest that Grayscale has in Ethereum Classic is not new. It started way back in April and played a role in the ETC rally that followed. Ethereum Classic outperformed Ethereum in terms of gains in that rally, as retail investors rode the Grayscale hype.
However, the price has since pulled back alongside the entire market. Ethereum Classic is down by over 70% from the highs it hit two months ago. It went from highs of $150 to lows of $39.1 at the moment.
Grayscale’s investment in Ethereum Classic is an indicator that it believes in ETC’s long-term growth and the growth of the entire crypto market. Grayscale is currently the most prominent asset manager globally and has assets under management.