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Grayscale Bitcoin Cash Trust (BCH)
Grayscale Investments, the sponsor, created the Bitcoin Cash Trust (ticker: BCHG) in early 2018 — the same year Bitcoin Cash itself emerged from a hard fork...
Grayscale Bitcoin Cash Trust (BCH)
Grayscale Investments, the sponsor, created the Bitcoin Cash Trust (ticker: BCHG) in early 2018 — the same year Bitcoin Cash itself emerged from a hard fork driven by disagreements over Bitcoin's scaling roadmap. The trust is a Delaware statutory trust that holds BCH directly. Its shares are designed to track the CoinDesk Bitcoin Cash Price Index, less fees. The trust does not redeem shares for underlying BCH, creating a persistent premium or discount to net asset value that reflects secondary-market supply and demand rather than a pure arbitrage mechanism. The trust holds only Bitcoin Cash. It does not diversify across crypto sectors or stages. The investment proposition is narrow: passive custody of BCH in cold storage with Coinbase Custody as the custodian. The sponsor charges a 2.5% annual management fee. Accredited investors can subscribe to private placements at NAV, subject to a standard six-month lockup, after which shares trade on OTC Markets under the symbol BCHG. Grayscale operates this trust alongside a suite of single-asset crypto products covering Bitcoin, Ethereum, Litecoin, and others. The parent company, now part of the Digital Currency Group (DCG) portfolio, manages the trust as a sponsor rather than an active fund manager. There is no investment committee making allocation decisions; the trust is a passive holding vehicle. As of early 2025, the trust had not converted to an ETF structure, a path Grayscale successfully pursued for its larger Bitcoin and Ethereum trusts following court victories against the SEC. The trust's structural differentiator is its form, not its strategy. As a closed-end grantor trust with no redemption mechanism, it functions more like a commodity pool locked in a '40 Act wrapper than a traditional fund. Its premium-discount dynamics are a direct product of that structure and the illiquidity of the underlying market. The sponsor's ability to charge a 2.5% fee on a passive, single-asset vehicle underscores how the trust's architecture derives its economics from regulatory access rather than active management.
General information
Firm type
Asset Manager
Year founded
2018
AUM
Undisclosed
Location
Region
North America
Country
United States
City
Stamford
Corporate office
Stamford, CT, United States
Principals
Michael Sonnenshein
CEO, Grayscale Investments (sponsor)
Sector focus
Frequently asked questions
How does the Grayscale Bitcoin Cash Trust differ from owning BCH directly?
The trust provides exposure through a traditional securities wrapper — shares trade under the ticker BCHG on OTC Markets, which means investors can hold it in brokerage or tax-advantaged accounts without managing private keys. The tradeoff is the fee (2.5% annually) and the fact that shares often trade at a significant premium or discount to the underlying BCH value. There is no redemption mechanism, so the market price can diverge persistently from NAV.
Is the trust structured as an ETF?
No. As of early 2025, BCHG remained a closed-end grantor trust, not an ETF. Grayscale successfully converted its larger Bitcoin and Ethereum trusts to ETFs, but the Bitcoin Cash Trust had not undergone that conversion. The trust does not have the continuous creation/redemption mechanism that keeps ETF prices tightly aligned with NAV.
Who custodies the Bitcoin Cash held by the trust?
Coinbase Custody Trust Company serves as the custodian for the trust's Bitcoin Cash holdings, per the trust's governing documents. The BCH is held in cold storage with institutional-grade security protocols.
How does an accredited investor subscribe to the trust?
Accredited investors can participate in periodic private placements offered by Grayscale at a price based on the NAV per share. Shares are subject to a statutory six-month holding period before they become eligible for resale on the OTC Markets. The minimum investment amount and other terms are set in each private placement's offering documents.
What fees does the trust charge?
The sponsor, Grayscale Investments, charges an annual management fee of 2.5% of the trust's net asset value. This is higher than Grayscale's Bitcoin Trust (2.0%) and substantially above passive equity ETFs, reflecting the operational and custody complexities of single-asset crypto trusts.
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