Grayscale's parent company, Digital Currency Group (DCG), revealed that it was planning to authorize the purchase of shares of the Grayscale Ethereum Classic Trust (OTCQX: ETCG) worth up to $50 million.
Digital Currency Group Doubles Down on Ethereum Classic
The company made the announcement via a press release on Monday (June 21, 2021). According to DCG, it would purchase the ETCG shares on the open market using cash.
The ETCG shares purchase authorization follows similar moves made in March and May 2021. In March, DCG announced the authorization purchase of its flagship product, Grayscale Bitcoin Trust (GBTC), worth up to $250 million. Later in May, Grayscales parent company increased the GBTC share purchase to $750 million.
Grayscale's interest in Ethereum Classic likely contributed to a major price rally for the token sometimes dubbed “the other Ethereum” back in April and early May. At the time, ETC outperformed Ether amid a parabolic price action advance also driven by retail hype and favorable social media sentiments.
An excerpt from the announcement reads:
“The share purchase authorization does not obligate DCG to acquire any specific number of shares in any period, and may be expanded, extended, modified, or discontinued at any time. The actual timing, amount and value of share purchases will depend entirely upon a number of factors, including the levels of cash available, price, and prevailing market conditions.”
ETC Down 72% Since May Altseason Peak
However, ETCs positive price performance at the start of the year did not extend beyond early May. Like the rest of the crypto market, Ethereum Classic has plummeted in value in the last two months from an all-time high above $150 to about $40 as of the time of writing.
Grayscale Investments, the largest digital asset manager in the world, has over $32 billion in assets under management (AUM). Back in April, Grayscale‘s AUM crossed the $50 billion milestone following bitcoin’s all-time high (ATH) at the time.
Meanwhile, the digital asset manager is among the U.S.-based companies who have submitted a proposal to the Securities and Exchange Commission (SEC), for a bitcoin ETF. As previously reported by CryptoPotato, Grayscale revealed that it would convert its GBTC Trust to a Bitcoin ETF.