In what is another major indicator of private firms’ willingness to join the crypto wagon, asset management outlet, Grayscale is about to see huge funds invested in its bitcoin-focused subsidiary, Grayscale Bitcoin Trust (GBTC shares). This was revealed via an announcement that stated that the new investor is none other than the parent company of Grayscale Investment itself, Digital Currency Group (DCG).
According to the press release, DCG has okayed the investment of $250 million on GBTC shares, which would be paid in cash. This development coincides with Grayscale’s stated plan to add exchange-traded fund specialists into the ranks of its highly professional workforce, thus hinting at the possibility of further diversification in the company.
DGC’s GBTC Shares Investment Strategic
As of the time of writing, DGC is yet to reveal the true motives behind its decision. However, TheDechained understands that this could be part of a strategic move considering that GBTC shares have Bitcoin selling at a very discounted price than is obtainable on most digital assets exchanges.
It’s also worth noting that while there was a decline in GBTC shares price, it did offer investors a negative premium to get Bitcoin at a cheaper value compared to elsewhere.
Canada a Safe Place For Bitcoin ETFs
In other news, Canada has cleared all regulatory uncertainties surrounding the operation of ETFs in the country. In response to the regulatory go-ahead, investors were seen trooping in with ready-funds to splash into the volatile crypto market. Consequently, the low value in GBTC price teased a huge number of them.
Surprisingly, the U.S. is yet to authorize any of the ETF application requests that were submitted to its authorities. Observers however believe the situation would improve in the nearest future. Commenting on this through his Twitter handle, “Layered Money: From Gold and Dollars to Bitcoin” author, Nik Bhatia said: “A U.S. ETF will unleash a wave of retail buying that will bend minds”.