Digital assets management firm Grayscale said it's temporarily halted inflows to the Grayscale Bitcoin Trust (GBTC). It wasn't immediately clear why the firm has done so.
Separately, Digital Capital Group, the parent of Grayscale as well as this news service, announced earlier today that it would buy up to $250 million in GBTC shares. Repurchasing shares is a common tool used by companies seeking to increase the price of those shares by simultaneously creating demand while decreasing the number of shares outstanding.
Rocked by the number of alternative bitcoin trusts and Canadian bitcoin exchange-traded funds, Grayscale Bitcoin Trust has been trading below the price of bitcoin for several weeks. Its sibling, Grayscale Ethereum Trust, has also flipped into negative territory. Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.
Yesterday, CoinDesk revealed Grayscale is hiring nine specialists in the ETF space, possibly signaling a pivot in its fund’s business model.
CORRECTED (March 11, 18:40 UTC): Corrects to remove implication that decline in GBTC is related to the halting of new investments.)
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.