Trading & Investing

Grayscale to Hire ETF Executives; Digital Currency Group Investing $250M in Bitcoin Trust (GBTC)

Digital Currency Group (DCG), a crypto investment company and the parent company of Grayscale Investments, has announced its plan to invest up to $250 million worth of shares of Grayscale Bitcoin Trust (GBTC).

This could mean DCG may get indirect exposure to Bitcoin through GBTC, which it intends to purchase on the open market.

Each share of GBTC represents 0.00094898 BTC, which is currently trading at $49.12, still at a 3.23% discount. The GBTC shares are trading at a discount to net asset value (NAV) since late February, falling to an all-time low of 11.92%.

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The drastic drop in the premium could either be investors making use of arbitrage opportunity or a panic sell-off from some large investors. The growing number of competing bitcoin funds, especially the launch of several Bitcoin exchange-traded funds (ETF), could also be playing a part here.

The world’s largest digital asset manager has north of $42 billion in AUM.

Grayscale is also hiring for several executives in the ETFs section. All seven positions are for Stamford, Connecticut, United States.

As per the company’s website, the asset manager is looking for ETF Authorized Participant Relationship Manager, ETF Compliance Officer, ETF Creation & Redemption Specialist, ETF Finance Reporting Manager, ETF Finance Support Manager, ETF Market Maker Relationship Manager, ETF Product Development Specialist, and ETF Sales Director.

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Unlike an ETF, Grayscale’s Bitcoin fund has no redemption process, which has been the reason behind the infamous GBTC premiums.

While a single ETF hasn’t been approved in the US yet, the popularity of Bitcoin ETFs in Canada, where three have been launched, has market expectations for one rising.

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