Digital Currency Group plans to invest up to $250 million in Grayscale Bitcoin Trust

Crypto venture capital giant Digital Currency Group (DCG) has announced its plan to invest up to $250 million in Grayscale Bitcoin Trust (GBTC).

The planned investment means DCG could end up getting indirect exposure to bitcoin worth $250 million. DCG intends to purchase GBTC shares on the open market.

DCG is the owner of Grayscale, the manager of GBTC, the world's largest bitcoin investment product that holds more than $35 billion worth of assets.

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Since DCG's investment is planned, it does not mean the group will buy GBTC shares. DCG said several factors would play a role in getting GBTC exposure, including the levels of cash available, price, and prevailing market conditions.

The news comes as GBTC is trading at a discount, meaning the market price of its shares in the over-the-counter secondary market is lower than the net asset value (NAV) of its shares. The current premium of GBTC stands at -5.43%.

The fall in the premium suggests that some large investors might be cashing out their gains or just arbitraging premiums away. Competing products, i.e., new bitcoin exchange-traded funds (ETFs) in Canada, could also be a contributing factor, as The Block reported previously.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.