Grayscale Bitcoin Cash Trust - BCHG stock
Introduction[edit]
Grayscale Bitcoin Cash Trust (OCTMKTS: BCHG) is a digital cryptocurrency investment product that investors can buy and sell through their brokerage accounts. It is a product of Grayscale Investments LLC which enables its customers to invest in various digital and Blockchain-related assets. Grayscale Investments LLC was formed in 2013 with the objective to provide investors with exposure to digital assets in the form of security without the challenges of buying, storing, and safekeeping. As an investment product, Grayscale Bitcoin Cash Trust debuted in the markets on 03rd January 2018 as per information on the Grayscale website. It is a unique cryptocurrency investment asset that is compliant with and reports financials regularly to the U.S. Securities and Exchange Commission (SEC). The SEC is responsible for the overall regulation of BCHG. [1]
Grayscale Bitcoin Cash Trust is sponsored by Grayscale Investments LLC and the sponsor is responsible for the day-to-day management administration of the trust and ensuring everything is pursuant to the regulations. Coinbase Custody Trust Company, LLC (the "Custodian"), a third-party service provider, is the custodian of the Trust. Currently, Grayscale Investments LLC is the world’s biggest digital asset management firm and part of the Digital Currency Group (DCG). DCG is also the parent company of the well-reputed digital assets firm CoinDesk.[1]
Business Operations[edit]
The primary investment objective of Grayscale Bitcoin Cash Trust (Symbol: BCHG) is for its shares to reflect the true value of BCH held by the trust, minus the fees and expenses. BCH refers to Bitcoin Cash, an altcoin version of the popular Bitcoin cryptocurrency. Earlier Bitcoin had a 1 MB limitation that caused transaction delays. As a result, Bitcoin Cash was created using a hard fork in Blockchain technology. The introduction of Bitcoin Cash has allowed a higher number of transactions and allowed the cryptocurrency to scale. [2]
Grayscale Bitcoin Cash Trust enables investors to gain exposure to BCH as security without having to deal with the difficulties of purchasing, storing, and safeguarding BCH directly. The minimum investment required is $25,000. The Assets under the Management of BCHG is $38.7 mn as of the date of writing along with a 2.5% Annual Fee. As BCH allows digital holding in form of shares, investors can hold it in certain IRA, Roth IRA, and other brokerage and investor accounts.[2]
Concerns About Security[edit]
On November 17 2022, Grayscale investments assured investors regarding the safety and security of Grayscale’s digital assets holdings. The firm informed that the assets are safe and unaffected by recent market events and will continue business operations as usual. The announcement was made as a response to the FTX sage and the huge loss of overall investor confidence in digital and Blockchain assets. “Grayscale’s digital asset products are designed to provide investors with secure, transparent access to the crypto ecosystem,” said Grayscale CEO Michael Sonnenshein. “While this is a difficult time for many, the Grayscale team remains unwaveringly confident in the future of the crypto industry. Our team has been and will continue to advocate for greater regulatory clarity for our investors, and we hope to see positive momentum in that regard in the months ahead.”[3]
OTC Symbol: BCHG | OTC Tier: OTCQX U.S.
- ↑ 1.0 1.1 Investopedia.com. What is Grayscale Bitcoin Trust? Retrieved on 01/26/2023
- ↑ 2.0 2.1 Grayscale.com. Products/Grayscale Bitcoin Cash Trust. Retrieved on 01/20/2023
- ↑ Yahoofinance.com. Grayscale Investments® Reaffirms Safety and Security of Holdings Underlying Grayscale’s Digital Asset Products. November 19, 2022.
