Grayscale Files to Convert Bitcoin Cash Trust (BCHG) Into Spot Bitcoin Cash ETF

Grayscale Investments is moving to convert its Bitcoin Cash Trust into a spot exchange-traded fund. An amended S-3 registration statement filed with the U.S. Securities and Exchange Commission on September 11 would rename the Grayscale Bitcoin Cash Trust as the Grayscale Bitcoin Cash Trust ETF and list its shares on NYSE Arca under the BCHG ticker, according to the SEC filing. The move is the asset manager’s latest effort to bring one of its single-asset crypto trusts onto a major U.S. exchange.

How the Conversion Would Work

The trust is a Delaware statutory trust that issues shares representing fractional ownership in Bitcoin Cash. Its shares currently quote on the OTCQX market under BCHG, with Coinbase Custody Trust Company serving as custodian, Coinbase acting as prime broker, and The Bank of New York Mellon as transfer agent and administrator. Once the registration statement, filed as Amendment No. 1 to Form S-3, is declared effective and the shares are listed on NYSE Arca, the sponsor, Grayscale Investments Sponsors, LLC, intends to rename the vehicle Grayscale Bitcoin Cash Trust ETF. The registration covers an indeterminate number of shares in a continuous offering, with sale prices tied to the underlying Bitcoin Cash holdings and the shares’ NYSE Arca trading price.