Buying back of shares is a common strategy for companies looking to increase the price of their shares by simultaneously creating demand while decreasing the number of shares outstanding.
The current discount of GBTC is around 10%, and there are several factors are behind the fall, including competing products in the market, as The Block reported last month.
The persistent discount recently led Marlton, an investment management firm with considerable GBTC holdings, to write an open letter to Grayscale.
Market experts recently told The Block that converting GBTC into a bitcoin ETF is one of the best options for Grayscale. Indeed, the firm announced last month that it is "100% committed" to the conversion. Still, U.S. regulators have yet to approve a bitcoin ETF in the country, and the Securities and Exchange Commission recently delayed a determination on a proposed ETF from VanEck.