Grayscale filed with the SEC to convert its Bitcoin Cash Trust into an ETF listed on NYSE Arca under the ticker BCHG, triggering a surge of over 30% in bitcoin cash in a single session. The precedent of GBTC and ETHE illustrates the risks of these closed-end structures: these trusts hit record discounts of 50% and 59% respectively at the end of 2022. The Bitcoin Cash Trust itself showed extreme swings, with a maximum premium of 1,852% and a maximum discount of 59% between August 2020 and June 2026. This conversion, combined with the announcement of CME futures on bitcoin cash scheduled for October 19, explains the market’s strong reaction. Bitcoin cash was trading around $336 on September 24, up from $270 before the CME announcement.
Source: Read the original article
