{"id":123548,"date":"2021-05-03T15:38:49","date_gmt":"2021-05-03T15:38:49","guid":{"rendered":"https:\/\/precoinnews.com\/?p=123548"},"modified":"2021-05-03T15:38:49","modified_gmt":"2021-05-03T15:38:49","slug":"grayscale-to-buy-500-million-gbtc","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/grayscale-to-buy-500-million-gbtc\/","title":{"rendered":"Grayscale to Buy $500 Million GBTC"},"content":{"rendered":"
Grayscale has announced plans to buy another $500 million worth of GBTC shares with the company stated they have already purchased $193.5 million.<\/p>\n
Grayscale announced the board has approved the purchase of up to $750 million worth of shares, leaving them free to buy another $550 million worth after the purchase of circa $200 million.<\/p>\n
That’s after the Grayscale Bitcoin Trust (GBTC) saw a significant discount to the bitcoin price of their shares.<\/p>\n
Each GBTC share is worth 0.00094462 BTC, which currently is valued at $55.03. A GBTC share itself however is trading at $48 on OTC Markets as can be seen above.<\/p>\n
That significant difference of more than 10% is potentially due to overshooting arbitrage as GBTC shares were previously at a huge premium.<\/p>\n
It may also be due to the launch of a number of bitcoin ETFs in Canada which has increased investors options for purchasing bitcoin.<\/p>\n
This newly authorized $500 million will now go towards closing that gap, but how successful it will be remains to be seen.<\/p>\n