DCG is now eligible to buy Grayscale Bitcoin Trust (GBTC) for up to $ 1 billion, according to an announcement released on Wednesday.

This development extends DCG’s pre-authorization by $ 250 million if they choose to do so. In fact, DCG has already acquired GBTC for $ 338 million, according to the company’s announcement on Wednesday.

As Cointelegraph previously reported, DCG bought GBTC shares for $ 193.5 million back in May 2021. At the time, the GBTC purchase limit for the company was $ 250 million.

As part of the announcement, DCG announced that it plans to use cash to facilitate purchases on the open market in accordance with the provisions of Rule 10b-8 of the Stock Exchange Act.

DCG’s announcement follows Grayscale’s plans to transform its GBTC product into a Bitcoin Exchange Traded Fund (BTC) (ETF).

However, such plans are subject to a softening of the position of the US Securities and Exchange Commission (SEC) on Bitcoin ETFs.

Related: Grayscale Confirms Bitcoin ETF Plans And Gives Their Confidence To Zcash, Stellar Lumens And Horizen

SEC Chairman Gary Gensler has already spoken out in favor of BTC-related ETFs backed by bitcoin futures instead of those based on the spot price of a cryptocurrency.

Gensler’s comments were part of the SEC leader’s remarks on raised questions about the ProShares ETF strategy, which went viral on Tuesday as the first BTC-related ETF to launch in the US market.

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

Earlier in October, Zcash (ZEC), Stellar Lumens (XM) and Horizen (ZEN) were the latest additions to the company’s altcoin trust package.

Grayscale Investment’s parent company, Digital Currency Group (DCG), has expanded its purchase quotas for the former Bitcoin Trust product.

Source: CoinTelegraph

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