DCG to buy $50M in shares of Grayscale’s Ethereum Classic trust

Digital Currency Group (DCG), the parent company of crypto-asset manager Grayscale Investments, said it plans to purchase up to $50 million in shares of the latter’s Ethereum Classic Trust.

DCG to buy $50M in shares of Grayscale’s Ethereum Classic trust

Digital Currency Group will fund the purchases with cash on hand and make them on the open market, according to the Monday announcement.

Ethereum Classic (ETC) price has tripled in May, reaching an all-time high of $177.26 but remained at a low of $40 as of today with a market capitalization of $4.7 billion, according to the data from CoinMarketCap.

Ethereum Classic was created in 2016 after a schism among Ethereum’s developers over how to handle a hack that resulted in a hard fork

Read: Crypto.com Capital made strategic investment in multichain NFT marketplace

Since 2017, Grayscale has funded Ethereum Classic’s developers, donating over $1 million to the ETC Cooperative from the trust’s management fees. Developers are using the funds to add Ethereum-based updates and upgrades to ETC and improve interoperability between ETC and its more mainstream cousin, ETH. Grayscale has committed to funding the Ethereum Classic Cooperative at least through the end of this year.

Despite these upgrades, Ethereum Classic’s functionality still pales in comparison to Ethereum’s, according to an analysis by researchers at brokerage firm eToro.

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