The focus of the share repurchase plan is Grayscale's Litecoin, Zcash, and Horizon investment products.
Grayscale's parent company, Digital Currency Group, or DCG, has revealed plans to buy back up to $250 million in shares of several Grayscale investment products.
DCG announced on Wednesday that the share repurchase plan is focused on Grayscale's Litecoin Trust, Horizon Trust, Zcash Trust, and other Grayscale products. The firm stated that the speed and timing of the share repurchase are not predetermined and will be decided by various factors, including "the levels of cash available, price, and prevailing market conditions."
DCG's Wednesday statement, like its last share repurchase announcement, did not disclose the reason for the new buyback.
According to the most recent data, Grayscale is the world's largest crypto asset manager, with almost $27 billion in assets under management. Grayscale's assets have dropped in value from a high of roughly $43.6 billion in November, indicating a dramatic drop in the price of Bitcoin and the wider crypto market.
Over the last year, institutional investors have expanded their exposure to crypto products, but their enthusiasm has faded during periods of significant market instability. Following a long downturn, crypto investment funds seem to be drawing new capital in recent weeks. According to data, inflows into crypto funds reached $36 million last week, with Bitcoin products reporting five straight weekly inflows totaling $239 million.