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Grayscale Bitcoin Cash TR BCH (BCHG+1.39%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net assets to $169,758,000 from $135,014,000 as of June 30, 2024. This increase is attributed to the appreciation in the price of Bitcoin Cash (BCH) and the creation of new shares.
The Trust reported a net realized and unrealized gain on investment in BCH of $34,592,000 for the three months ended December 31, 2024, driven by the increase in BCH price from $340.91 to $435.89.
Net investment loss for the quarter was $1,027,000, primarily due to the Sponsor's Fee, which is calculated as 2.5% of the Trust's assets.
The Trust's shares outstanding increased to 46,206,300 from 40,366,000 at the beginning of the period, reflecting the creation of new shares.
The Trust's principal market for BCH is identified as Coinbase, where the fair value of BCH was determined to be $435.89 at the end of the period.
The Trust does not currently operate a redemption program and has no intention to seek regulatory approval for one.
The filing also details a reorganization within Grayscale, with Grayscale Investments Sponsors, LLC becoming the sole sponsor of the Trust effective May 3, 2025.
The Trust is subject to various risks, including market risk and the potential for BCH to be classified as a security, which could have material adverse effects.
The Trust has not held any cash or cash equivalents since inception, relying on BCH transactions for all operations.
The Sponsor of the Trust is responsible for most expenses, with the Sponsor's Fee covering ordinary course expenses, while extraordinary expenses may be paid from the Trust's assets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Grayscale Bitcoin Cash TR BCH quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.