Grayscale Bitcoin Cash Trust

What they do

The Trust is a passive entity managed by sponsor Grayscale Investments Sponsors, LLC, a consolidated subsidiary of Digital Currency Group, with no officers, directors or employees. It periodically issues Shares in 100-Share Baskets to accredited investors and Authorized Participants in exchange for deposits of BCH, and it does not itself transact on any digital asset markets. Coinbase Custody Trust Company, LLC serves as custodian, CSC Delaware Trust Company as trustee, and Continental Stock Transfer & Trust Company as transfer agent. As of June 30, 2026, each Share represented approximately 0.0081 BCH, and the Trust is not operating a redemption program.

Revenue drivers

• BCH price exposure (net asset value) — The Trust's only asset is the BCH it holds, so results are driven by changes in the fair value of BCH; the Trust records changes as net change in unrealized appreciation or depreciation on investments.
• Share creations in exchange for BCH — The Trust issues Shares in Baskets of 100 to Authorized Participants in exchange for BCH deposits, growing the BCH held and the number of Shares outstanding.
• Sponsor's Fee paid in BCH — The Sponsor charges a fee that the Trust settles in BCH; realized gains and losses are recognized in connection with settling the Sponsor's Fee in BCH.

Recent performance

Annual net income was -$135.4M in 2022, $60.8M in 2023, $20.3M in 2024, $45.0M in 2025, and -$126.4M in 2026. The most recent balance sheet, as of 2026-06-30, shows total assets of $76.6M and total liabilities of $0.00. The Trust states that to date it has not met its investment objective: the Shares quoted on OTCQX have not reflected the value of the BCH held less expenses and liabilities, and have instead traded at premiums and discounts to that value, at times substantial.

Strategy

The Trust's stated investment objective is for the value of the Shares (based on BCH per Share) to reflect the value of the BCH held by the Trust, determined by reference to the Index Price, less the Trust's expenses and other liabilities. It pursues this passively by holding BCH, and it will not utilize leverage, derivatives or similar arrangements. Effective October 1, 2025, the Index used to calculate NAV and NAV per Share is the CoinDesk Bitcoin Cash Benchmark Rate, replacing the prior CoinDesk Bitcoin Cash Price Index (BCX). In September 2025 the Trust filed a Form S-3 registration statement for a proposed public offering and listing on NYSE Arca, Inc., which as of the latest 10-K had not been declared effective; shares continue to be offered only through private placements and trade on OTC Markets.

Risks

• No redemption program — The Sponsor is not operating a redemption program, so Shares are not redeemable by the Trust and cannot be exchanged for BCH at NAV.
• Premium/discount to NAV — The Trust acknowledges it has not met its investment objective and that Shares have traded at both premiums and discounts to the value of the BCH held, at times substantial.
• BCH price concentration — The Trust holds only Bitcoin Cash, so annual results swing with BCH fair value, from $60.8M net income in 2023 to -$126.4M in 2026.
• Uncertain NYSE Arca listing — The September 2025 Form S-3 for a proposed public offering and NYSE Arca listing has not been declared effective, and there is no assurance the SEC will declare it effective, NYSE Arca will approve the listing, or an active trading market will develop.

Outlook

Management describes the Trust as a passive vehicle with no officers, directors or employees, and states no change to the objective of having Share value reflect the BCH held, determined by reference to the Index Price, less expenses and liabilities. It continues to reference the proposed public offering and NYSE Arca listing filed in September 2025, but notes the registration statement is not yet effective and gives no assurance that it will be. The Trust also discloses it is not accepting redemption requests from shareholders.