Grayscale Bitcoin Cash Trust (BCH), a digital currency investment product, announced on Thursday the addition of Crypto.com to its benchmark index, the CoinDesk Bitcoin Cash Price Index (BCX). The inclusion, effective since Sunday, came after Crypto.com met the required liquidity criteria during the Index Provider's scheduled quarterly review.
The Index Provider, CoinDesk Indices, Inc., has not removed any Constituent Trading Platforms in this recent update. Currently, the Digital Asset Trading Platforms included in the BCX are Coinbase (NASDAQ:COIN), Kraken, Bitstamp, LMAX Digital, and now Crypto.com.
The Index Price, crucial for the Trust's valuation, is subject to change based on the Index Provider's quarterly reviews. These revisions may include the addition or removal of Constituent Trading Platforms that meet or fail to meet specific criteria outlined in the Trust’s Annual Report.
The Grayscale Bitcoin Cash Trust enables investors to gain exposure to the price movement of Bitcoin Cash (BCH) through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping BCH directly.
This update is part of the Trust's ongoing efforts to ensure the Index reflects the most accurate representation of the market for Bitcoin Cash. The Trust's operations are subject to regulations by the Securities and Exchange Commission (SEC), with the latest changes reported in compliance with SEC requirements.
In other recent news, Grayscale Bitcoin Cash Trust, a digital currency investment product, has been active in issuing new shares to accredited investors. The Trust has reported the private placement of 474,900 new shares, resulting in the acquisition of an aggregate of 4,021.61105676 Bitcoin Cash (BCH), valued at approximately $1.4 million. This brings the total number of issued and outstanding shares of the Trust to 44,478,400.
In addition, the Trust has also reported the private sale of 863,500 shares, totaling an aggregate of 7,315.78370806 Bitcoin Cash (BCH), equivalent to approximately $2,665,985. Other recent transactions include the issuance of 536,700 shares, resulting in an aggregate of 4,556.10609039 BCH, valued at approximately $1,513,370, and 861,000 shares, resulting in an aggregate of 7,321.89762611 BCH, equivalent to $2,532,714.
These transactions, facilitated by Grayscale Securities, LLC, have been conducted in accordance with Rule 506(c) of the Securities Act of 1933, exempting them from registration requirements. The continuous issuance of shares suggests that a "distribution" may be happening over time. Grayscale Securities, acting as the Authorized Participant, has not received any underwriting discounts or commissions in these transactions.
InvestingPro Insights
Recent data from InvestingPro sheds light on the performance of Grayscale Bitcoin Cash Trust (BCHG). The trust has shown remarkable volatility, with a 31.09% return over the last month and an impressive 361.58% return over the past year. This aligns with the trust's objective of providing exposure to Bitcoin Cash's price movements, which can be highly volatile.
InvestingPro Tips highlight that BCHG generally trades with high price volatility, which is consistent with the nature of cryptocurrency investments. Additionally, the trust has demonstrated a strong return over the last month, reflecting the recent positive momentum in the crypto market.
It's worth noting that BCHG does not pay dividends to shareholders, which is typical for cryptocurrency investment vehicles that focus on price appreciation rather than income generation. For investors seeking more comprehensive analysis, InvestingPro offers 3 additional tips that could provide further insights into BCHG's investment profile.
Given the trust's recent performance and the addition of Crypto.com to its benchmark index, investors may find these InvestingPro insights particularly relevant when considering their position in BCHG or evaluating the impact of the expanded index on the trust's future performance.
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