Leading crypto investment company Grayscale Investments has launched its newest investment product, Bitcoin Cash Trust (BCHG). This move expands their crypto product range and opens the door for investors to gain exposure to Bitcoin Cash (BCH) through structured investment instruments.
What is Bitcoin Cash Trust (BCHG)?
BCHG is a collective ownership trust or grantor trust established in Delaware, United States. As a grantor trust, BCHG allows investors to gain exposure to the underlying crypto asset, in this case Bitcoin Cash (BCH), but with an ownership structure that is more familiar to conventional investors.
This trust is specifically designed to passively track Bitcoin Cash price performance. This means that funds accumulated in BCHG will be invested entirely in BCH, without any active trading strategy or diversification into other assets. Thus, BCHG’s performance will depend greatly on the price fluctuations of Bitcoin Cash itself in the crypto market.
However, to offset operational costs and trust management, there is a reduction in the amount of BCH owned by BCHG. These fees cover the costs of secure storage of crypto assets, audit fees, legal fees, and other administrative costs necessary to run the trust operations.
Despite this reduction, BCHG continues to strive to track BCH price movements as closely as possible by minimizing cash drag or situations where funds lie idle in the form of unproductive cash. In other words, the vast majority of BCHG funds will always be invested in Bitcoin Cash in order to provide maximum exposure for its unit holders.
BCHG Statement and Price per Share
“The launch of BCHG reflects our commitment to continue to innovate and provide greater access for investors to gain exposure to leading crypto assets,” said Michael Sonnenshein, CEO of Grayscale Investments.
BCHG is present as one of the first crypto investment instruments that specifically invests in Bitcoin Cash. This provides a new way for investors to gain exposure to BCH without having to face the challenges of purchasing, storing, and securing the crypto asset directly.
In its release, Grayscale stated that BCHG allows investors to access Bitcoin Cash through a familiar investment structure, namely ownership of securities or investment securities.
The launch of BCHG adds to Grayscale’s line of crypto products that are widely known, such as the Grayscale Bitcoin Trust (GBTC) which is the trust of investors around the world to invest in Bitcoin (BTC).
In trading on April 17, 2024, the price per share of BCHG was reported at $11,695. Investors can monitor BCHG’s performance on various financial news sources or directly on the Grayscale website.
It is believed that the presence of BCHG will increase investor accessibility and demand for Bitcoin Cash in the crypto market. With Grayscale’s reputation and experience, this product has the potential to be a new catalyst for wider BCH adoption.
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*Disclaimer
This content aims to enrich reader information. Always do your own research and consider carefully before investing. Use funds that are not too vital for your needs before getting involved in investing. All bitcoin buying and selling activities and other crypto asset investments are the responsibility of the reader.
Author: RB & AL
Sumber Ref:
https://www.grayscale.com/crypto-products/grayscale-bitcoin-cash-trust
https://seekingalpha.com/article/4656800-why-grayscale-bitcoin-cash-trust-trading-at-massive-premium
