Digital Currency Group Buys $50M in Ethereum Classic Grayscale Shares

Digital Currency Group (DCG) announced on Monday that it will acquire $50 million worth of ETCG, a stake owned by its subsidiary Grayscale, which is a proxy to own Ethereum Classic. Announcing the acquisition, the company said, "DCG plans to use cash to finance acquisitions and will make purchases on the open market at management's discretion." Grayscale is best known for its flagship product, the Grayscale Bitcoin Trust, which has large amounts of Bitcoin that it packs in publicly traded stocks. Bitcoin Trust and other Grayscale products offer investors a way to gain exposure to a variety of cryptocurrencies, including some large funds that are not eligible to buy crypto directly. Grayscale first released the Ethereum Classic product in 2017. The "classic" currency, which emerged after a group of Ethereum miners refused to participate in the 2016 fork led by Ethereum founder Vitalik Buterin, currently has a market cap of around $5 billion. A fraction of Ethereum's current market cap of about $225 billion. The DCG announcement does not seem to give Ethereum Classic a noticeable market boost. The currency fell nearly 10% on Monday, a day of wide drops in the crypto markets. Ethereum Classic had several price spikes in the bull market earlier this year, briefly surpassing $100 as traders tried to give it a Dogecoin-like pump. On Monday afternoon, it was trading around $43. DCG's decision to purchase shares of the Ethereum Classic trust comes after the company announced in early May that it would spend $750 million to acquire shares of Grayscale Bitcoin Trust. Digital Currency Group Bought $750M in GBTC Stocks and $750M Purchase Widely Viewed by DCG as a Move to Support Price of Grayscale Bitcoin Trust, which has flopped badly amid rumors that the SEC is launching a Bitcoin ETF – an improvement that will

Join the Discussion

  • BrokerEUR/USD
    FX Pro 0.91pips. (variable) margin: 3.33%
    ETX Capital 0.6pips (variable) margin: 3.33%
  • Back to top