Grayscale parent company expands GBTC purchase allocation to $1 billion

According to an announcement issued on Wednesday, DCG is now authorized to buy up to $1 billion worth of Grayscale Bitcoin Trust (GBTC).

This development extends DCGs prior authorization by $250 million if they choose to do so. Indeed, DCG has so far purchased $338 million in GBTC, according to the companys announcement on Wednesday.

As previously reported by Cointelegraph, DCG had purchased $193.5 million worth of GBTC shares back in May 2021. At the time, the firms GBTC purchase limit stood at $250 million.

As part of the announcement, DCG revealed that it plans to use cash on hand to facilitate the purchase on the open market under the provisions enshrined in Rule 10b-8 of the Exchange Act.

DCGs announcement comes on the heels of plans by Grayscale to convert its GBTC product to a Bitcoin (BTC) exchange-traded fund (ETF).

However, such plans depend on the United States Securities and Exchange Commission (SEC) softening its stance on Bitcoin ETFs.

Related: Grayscale confirms Bitcoin ETF plans and adds exposure to Zcash, Stellar Lumens and Horizen to its trusts

SEC chairman Gary Gensler has already spoken in favor of BTC-related ETFs backed by Bitcoin futures rather than those based on the spot price of the cryptocurrency.

Genslers comments were part of SEC chairman’s remarks on issues raised about the ProShares Bitcoin Strategy ETF that made history on Tuesday as the first BTC-related ETF to launch in the U.S. market.

Apart from its future Bitcoin ETF plans, Grayscale has also added more cryptocurrencies to its catalog of investment products.

Earlier in October, Zcash (ZEC), Stellar Lumens (XM), and Horizen (ZEN) became the latest additions to the firms suite of altcoin trusts.

Grayscale Investments parent company Digital Currency Group (DCG) has extended its purchase allocation for the formers Bitcoin Trust product.