If You Invested in Grayscale Bitcoin Cash Trust (BCHG)

Grayscale Bitcoin Cash Trust (BCH) (BCHG) is a statutory trust that issues shares representing an interest in Grayscale Bitcoin Cash Trust (BCH). According to its SEC filings, the registrant is a trust and its sponsor is Grayscale Investments Sponsors, LLC, which is part of the Grayscale group of entities consolidated under Digital Currency Group, Inc. The trust’s shares are identified as Grayscale Bitcoin Cash Trust (BCH) Shares and trade under the symbol BCHG. The trust’s filings indicate that its shares are registered pursuant to Section 12(g) of the Securities Exchange Act of 1934, with the exchange field shown as "N/A" in recent reports.

The trust structure is designed so that Grayscale Investments Sponsors, LLC acts as sponsor, with CSC Delaware Trust Company serving as trustee under an Amended and Restated Declaration of Trust and Trust Agreement, as further amended over time. The sponsor is responsible for managing and directing the affairs of the trust under the terms of the trust agreement, and the trust’s SEC filings describe the sponsor’s role in proposing and implementing amendments to that agreement, subject to the consent framework set out for shareholders.

Grayscale Bitcoin Cash Trust (BCH) uses an index-based approach to value the Bitcoin Cash (BCH) it holds for operational purposes. In its Form 8-K dated September 26, 2025, the trust states that, prior to October 1, 2025, it valued BCH by reference to the CoinDesk Bitcoin Cash Index (BCX). As of October 1, 2025, the trust began using the CoinDesk BCH CCIXber Reference Rate as its index (the "Index"). The trust’s net asset value (NAV) and NAV per share are calculated using the index price based on this reference rate, with the index price described as the value of BCH calculated at 4:00 p.m., New York time, on each business day.

The same filing explains that the index provider, CoinDesk Indices, Inc., selects digital asset trading platforms ("Constituent Trading Platforms") for inclusion in the index using a methodology guided by International Organization of Securities Commissions (IOSCO) principles for financial benchmarks. Platforms must satisfy specified inclusion criteria, such as real-time price discovery, transparent ownership, publicly available compliance policies, programmatic spot trading and data publication, and certain licensing and liquidity characteristics. The methodology includes volume weighting, foreign exchange conversion for stablecoin pairs, outlier detection, inactivity adjustments, and measures intended to reduce the impact of anomalous trading on the index price.

In an 8-K dated November 21, 2025, the trust reports that CoinDesk Indices, Inc. changed the constituent trading platforms used to calculate the index price for the trust. The filing notes that itBit (BCH-USD trading pair) was removed from the CoinDesk BCH CCIXber Reference Rate due to failing to meet the index provider’s conditions for inclusion, and lists the then-current constituent platforms for BCH-USD and BCH-USDC trading pairs. The filing also emphasizes that the index provider may change the trading venues used to calculate the index price or otherwise adjust the calculation methodology at any time, including through scheduled reviews.

Grayscale Bitcoin Cash Trust (BCH) is sponsored by an entity within the broader Grayscale and Digital Currency Group structure. An 8-K dated October 24, 2025 describes an internal corporate reorganization in which Grayscale Investments, Inc. became the sole managing member of Grayscale Operating, LLC, which is the sole member of Grayscale Investments Sponsors, LLC, the sponsor of the trust. The filing states that the board of directors of Grayscale Investments is now responsible for managing and directing the affairs of the sponsor and notes that these entities are consolidated subsidiaries of Digital Currency Group, Inc. The trust indicates that it does not expect this reorganization to have a material impact on its operations.

The trust’s governance and shareholder consent framework are detailed in its definitive proxy statement on Schedule 14A dated September 25, 2025. That document explains that the trust agreement, originally dated March 1, 2018 and subsequently amended, can be further amended through proposals submitted by the sponsor to shareholders. The proxy statement outlines four proposals to amend and restate the trust agreement, covering alternative procedures for creation and redemption of baskets, changes to the timing of the sponsor’s fee, the ability to hold a portion of the trust estate in omnibus accounts to facilitate creation and redemption of shares, and expanded sponsor authority to amend the trust agreement subject to notice requirements and certain tax-related conditions.

Under Proposal 1 in the proxy materials, the sponsor seeks to allow the trust, subject to specified requirements, to create and redeem baskets in exchange for cash from or to an authorized participant, which the sponsor describes as providing operational efficiencies. Proposal 2 would change the sponsor’s fee from being payable monthly in arrears to being payable daily in arrears, while maintaining the sponsor’s discretion over when to instruct the custodian to withdraw BCH from the trust’s BCH account equal to accrued but unpaid fees. Proposal 3 would permit a portion of the trust estate to be held in one or more omnibus accounts in order to utilize prime brokerage services of an affiliate of the custodian. Proposal 4 would allow the sponsor to make certain restatements, amendments or supplements to the trust agreement in its sole discretion without shareholder consent, subject to a 20-day notice period for changes that materially adversely affect shareholder interests and conditions intended to preserve the trust’s status as a grantor trust for U.S. federal income tax purposes.

An 8-K dated October 21, 2025 reports the outcome of the consent solicitation described in the proxy statement. That filing shows the vote tallies for each of the four proposals and explains that, under the terms of the trust agreement, shareholders who did not object in writing within 20 calendar days of the consent solicitation statement were deemed to have consented. The filing states that shareholders holding more than 90% of the trust’s outstanding shares consented to each of the proposals and that a sufficient number of shareholders had consented by October 15, 2025, at which point the consent solicitation and revocation period concluded. The sponsor and trustee are expected to implement the approved proposals through amendments to the trust agreement.

Custody and safekeeping of the trust’s BCH holdings are addressed in detail in the 8-K dated October 9, 2025. That filing describes a Coinbase Prime Broker Agreement among the sponsor, the trust, and Coinbase, Inc., acting on behalf of itself and certain affiliates, including Coinbase Custody Trust Company, LLC and Coinbase Credit, Inc. The agreement governs the trust’s use of custodial and prime broker services. The filing explains that all of the trust’s BCH, other than amounts credited to a settlement balance, are held in custody accounts (the "Vault Balance") maintained by Coinbase Custody, which controls the private keys on the trust’s behalf and holds them in an offline manner often referred to as "cold storage." BCH credited to a separate "Settlement Balance" may be held in omnibus cold or hot storage wallets or in omnibus accounts with third-party venues connected to Coinbase, with the prime broker maintaining internal ledgers to track the trust’s entitlement.

The same 8-K emphasizes that BCH in the vault balance are treated as fiduciary assets that remain the property of the trust and are not treated as general assets of the custodian. The custodian represents that it has no right, interest, or title in those BCH and agrees not to lend, pledge, hypothecate or rehypothecate them. BCH credited to the settlement balance are treated as custodial assets held for the benefit of the trust, with the prime broker representing that it will not sell, transfer, loan, rehypothecate or otherwise alienate those assets. The parties agree to treat the digital assets credited to the vault and settlement balances as "financial assets" under Article 8 of the New York Uniform Commercial Code and to treat the relevant accounts as "securities accounts" with the trust as "entitlement holder."

The October 9, 2025 filing also discusses the custodian’s insurance and capital reserves. It states that the custodian is required to maintain insurance in types and amounts considered commercially reasonable for the custodial services it provides and that Coinbase Global, Inc. procures fidelity or crime insurance coverage for losses of digital assets held in custody, including the trust’s BCH, resulting from certain theft or fraud events. The filing notes, however, that Coinbase has disclosed that the total value of crypto assets in its possession and control exceeds the total value of insurance coverage and that the trust cannot be assured that capital reserves or insurance would be sufficient to cover all potential losses.

Another aspect of the trust’s public disclosures concerns communications and third-party content. In an 8-K dated December 3, 2025, the trust, through its sponsor, describes the use of cashtags and third-party content on the social media platform X (formerly Twitter). The filing explains that Grayscale maintains a presence on X and that X automatically converts ticker symbols preceded by a "$" into hyperlinks directing users to pages containing market data, news, commentary, and other content created or supplied by third parties. The sponsor states that it does not control, endorse, or assume responsibility for the information displayed on those X-generated pages or for any third-party websites, data sources, or services accessible through them, and advises investors not to rely on such information as having been authorized by Grayscale. Instead, the filing directs investors to the trust’s SEC filings for authoritative and up-to-date information.

Across these filings, Grayscale Bitcoin Cash Trust (BCH) presents itself as a trust whose affairs are managed by a sponsor within the Grayscale and Digital Currency Group organization, with a focus on index-based valuation of its BCH holdings, a detailed custody and safekeeping framework with a third-party custodian and prime broker, and a governance structure defined by a trust agreement that can be amended through sponsor-led proposals and shareholder consent mechanisms. Investors researching BCHG can use the trust’s SEC filings to understand how the index price is determined, how BCH is held and safeguarded, and how changes to the trust’s operations and governing documents are proposed and implemented.