blockchainreporter.net
Grayscale Investments is moving to convert its Bitcoin Cash Trust into a spot exchange-traded fund. An amended S-3 registration statement filed with the U.S. Securities and Exchange Commission on September 11 would rename the Grayscale Bitcoin Cash Trust as the Grayscale Bitcoin Cash Trust ETF and list its shares on NYSE Arca under the BCHG ticker, according to the SEC filing. The move is the asset manager’s latest effort to bring one of its single-asset crypto trusts onto a major U.S. exchange.
How the Conversion Would Work
The trust is a Delaware statutory trust that issues shares representing fractional ownership in Bitcoin Cash. Its shares currently quote on the OTCQX market under BCHG, with Coinbase Custody Trust Company serving as custodian, Coinbase acting as prime broker, and The Bank of New York Mellon as transfer agent and administrator. Once the registration statement, filed as Amendment No. 1 to Form S-3, is declared effective and the shares are listed on NYSE Arca, the sponsor, Grayscale Investments Sponsors, LLC, intends to rename the vehicle Grayscale Bitcoin Cash Trust ETF. The registration covers an indeterminate number of shares in a continuous offering, with sale prices tied to the underlying Bitcoin Cash holdings and the shares’ NYSE Arca trading price.
A Familiar Grayscale Playbook
The filing mirrors Grayscale’s earlier conversions of single-asset trusts into spot ETFs. In a separate filing this month, the firm moved to convert its Litecoin Trust (LTCN) into a spot Litecoin ETF, and it already debuted the first U.S. spot Zcash ETF on NYSE Arca. The planned listing would lean on the exchange’s proposed Rule 8.201-E, a generic listing standard for commodity-based exchange-traded products that NYSE Arca submitted to the SEC on July 30, 2025. Grayscale has framed such conversions as a way to align trust share prices more closely with the value of the digital assets they hold.
What Comes Next
The filing remains subject to SEC approval, and the documents do not set a timeline for effectiveness or listing. Grayscale also noted that the trust has historically not met its investment objective, with OTCQX shares trading at both premiums and discounts to the value of the Bitcoin Cash it holds — a gap an exchange-listed ETF is intended to narrow. Any conversion depends on the SEC clearing both the registration statement and the exchange listing rules, leaving the timing of a potential BCHG listing on NYSE Arca uncertain.