# Grayscale Bitcoin Cash Trust (BCH)

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Grayscale Bitcoin Cash Trust (BCH)).

## Overview

Grayscale Bitcoin Cash Trust (BCH) is a Delaware statutory trust that holds BCH and issues shares representing fractional beneficial interests in that BCH. Its shares trade on OTCQX under the ticker BCHG, giving accredited investors and secondary-market buyers a regulated vehicle for gaining exposure to Bitcoin Cash without directly holding the token.

## Products & services

• Trust shares backed by Bitcoin Cash (BCH)
• Periodic share creations in exchange for BCH deposits
• OTCQX-listed secondary market trading (BCHG)
• Custodial holding of BCH through Coinbase Custody Trust Company, LLC

- **Investment trust shares** (100%) — Shares representing fractional undivided beneficial interest in BCH held by the Trust.
- **Custody and asset administration** (0%) — Safekeeping of BCH and operational administration of the Trust's holdings.

- Trust shares backed by Bitcoin Cash (BCH)
- Periodic share creations in exchange for BCH deposits
- OTCQX-listed secondary market trading (BCHG)
- Custodial holding of BCH through Coinbase Custody Trust Company, LLC

## Customers

The Trust serves accredited investors who want exposure to Bitcoin Cash through a security rather than direct token ownership. Its shares also trade in the secondary market, so retail and institutional market participants can buy or sell BCHG for price exposure, liquidity, or portfolio allocation purposes. Demand is driven primarily by investors and speculators seeking BCH price appreciation, while the Trust itself does not operate a consumer-facing payment business.

- **Accredited investors** (primary) — Buy newly created shares in exchange for BCH to gain direct exposure through a regulated trust structure.
- **Secondary market investors** (primary) — Buy and sell BCHG on OTCQX for trading exposure, liquidity, and arbitrage versus NAV.
- **Crypto speculators** (secondary) — Trade the shares based on BCH price expectations, volatility, and market sentiment.

- Accredited investors subscribing for newly created shares
- Secondary-market buyers and sellers on OTCQX
- Crypto investors seeking BCH price exposure in brokerage accounts
- Speculators trading BCHG around BCH price moves and discounts/premiums
- Portfolio allocators using a listed wrapper instead of direct token custody

## Geography

The Trust is organized in Delaware and operates as a U.S.-based investment vehicle, with shares quoted on OTCQX in the United States. Its economic exposure is global because BCH is a decentralized digital asset traded on international digital asset platforms, but the filing does not disclose country-level revenue or operating geography. Operationally, the Trust relies on U.S.-based market infrastructure and a U.S.-regulated custodian, while BCH price formation is influenced by global trading activity.

- Delaware statutory trust organized in the United States
- Shares quoted on OTCQX in the U.S. market
- BCH pricing is global and set on digital asset trading platforms
- Custody and administration are tied to U.S.-regulated service providers
- No country-level revenue disclosure in the filing

## Strategy

The Trust's core strategy is passive exposure: hold BCH, issue shares against BCH deposits, and track BCH value less expenses. It seeks to minimize non-BCH assets and operational complexity, while using fair-value accounting and a principal-market price to reflect the underlying token economics. The Trust also depends on market acceptance of BCH and the liquidity of digital asset trading venues to support share trading and valuation.

- **Preserve tight tracking to BCH value** (short-term) — The investment case depends on shares reflecting BCH per share after fees and liabilities.
- **Maintain efficient trust operations** (short-term) — Low operating complexity helps minimize drag on NAV and keeps the product simple for investors.
- **Rely on market acceptance of BCH** (medium-term) — Longer-term demand depends on BCH adoption, liquidity, and continued trading venue support.

- Maintain a passive BCH holding structure rather than active trading
- Issue shares against BCH deposits to expand assets under management
- Use principal-market fair value to align NAV with BCH pricing
- Keep non-BCH assets and cash balances near zero
- Support secondary-market liquidity through OTCQX listing

## Risks

The Trust is exposed almost entirely to BCH price volatility, because its value is derived from a single digital asset and shares can trade at a premium or discount to NAV. It also faces regulatory, custody, liquidity, and market-structure risks tied to digital asset trading platforms, banking access, and the evolving acceptance of BCH as a payment and investment asset. Because BCH is a decentralized protocol, adverse changes in network development, security, or public perception can directly affect share value.

- **BCH price volatility** [critical] — The Trust holds a single volatile digital asset, so share value moves with BCH market price.
- **Discount/premium to NAV** [high] — OTCQX trading hours, liquidity, and market frictions can cause shares to diverge from underlying BCH value.
- **Regulatory and banking access** [high] — Banks, custodians, and trading platforms may restrict BCH-related activity due to compliance concerns.
- **BCH adoption risk** [high] — If BCH is not widely accepted for payments or investment, demand for the Trust may remain limited.

- BCH price volatility directly drives NAV and share trading performance
- Shares can trade at discounts or premiums to NAV on OTCQX
- Limited BCH acceptance reduces long-term utility and demand
- Regulatory or banking restrictions can impair trading and custody access
- Digital asset network or protocol issues could damage BCH confidence

## Accounting

The Trust measures BCH at fair value using the principal market price, so reported net assets and unrealized gains or losses can change sharply with market moves. Share creations, sponsor-fee settlements, and any BCH used to pay expenses are recorded as investment transactions, which affects realized gains and losses and can create period-to-period noise. Because the Trust has no cash balance and is not accepting redemptions, accounting outcomes are heavily driven by BCH valuation and fee mechanics rather than operating cash flows.

- **Fair value measurement of BCH** — Can materially change quarterly reported results
- **Realized gains/losses on BCH transfers** — Creates realized P&L unrelated to operating performance
- **Share creation accounting** — Affects BCH per share and NAV tracking

- Fair value measurement of BCH drives reported net assets and earnings
- Principal market selection affects NAV per share
- Sponsor fee paid in BCH creates realized gains/losses
- Share creations and redemptions are recorded as investment transactions
- No cash balance means limited traditional operating cash flow reporting

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*Last updated: 2026-04-28T20:12:04.704678+00:00*