Grayscale Bitcoin Cash Trust Sees $15M Operational Gain, NAV Jumps

TL;DR

**BCHG is finally showing signs of life, with a strong quarter driven by Bitcoin Cash appreciation and potential for broader market access.**

AI Summary

Grayscale Bitcoin Cash Trust (BCHG) reported a significant increase in net assets, rising from $202.961 million on June 30, 2025, to $217.980 million by September 30, 2025. This 7.4% increase was primarily driven by a net increase in net assets resulting from operations of $15.019 million for the three months ended September 30, 2025, a stark contrast to the net decrease of $18.873 million in the same period of 2024. The Trust's investment in Bitcoin Cash (BCH) at fair value increased from $202.961 million to $217.980 million over the quarter. The net change in unrealized appreciation on investment in BCH was $15.979 million for the three months ended September 30, 2025, reversing a depreciation of $18.005 million in the prior year. The Sponsor's Fee, a related party expense, increased to $1.372 million for the quarter, up from $782 thousand in the same period last year. The Trust held 389,821.38057085 BCH as of September 30, 2025, down from 392,285.62958128 BCH on June 30, 2025, indicating some BCH was used for expenses. The Principal Market NAV per Share rose from $4.31 to $4.63 during the quarter. The SEC approved new Generic Listing Standards on September 17, 2025, which the Sponsor believes BCHG's shares would qualify for, potentially impacting future liquidity and market access.

Why It Matters

This 10-Q filing reveals a positive shift in Grayscale Bitcoin Cash Trust's performance, with a substantial increase in net assets driven by unrealized appreciation in BCH. For investors, this indicates a potentially improving market sentiment for Bitcoin Cash and a positive return on their investment in BCHG shares, which saw its Principal Market NAV per Share rise from $4.31 to $4.63. The SEC's approval of new Generic Listing Standards on September 17, 2025, is a critical development, as the Sponsor believes BCHG shares would qualify, potentially paving the way for broader market access and enhanced liquidity, which could attract more institutional and retail investors. This competitive context could position BCHG more favorably against other crypto investment vehicles, benefiting shareholders and potentially increasing the Trust's market capitalization.

Risk Assessment

Risk Level: medium — The Trust's performance is entirely dependent on the volatile price of Bitcoin Cash, as evidenced by the $15.979 million net change in unrealized appreciation for the three months ended September 30, 2025, following an $18.005 million depreciation in the prior year. While the Trust believes its shares would qualify for new SEC Generic Listing Standards, this is not guaranteed and the Trust currently does not operate a redemption program, limiting liquidity for investors.

Analyst Insight

Investors should monitor the price of Bitcoin Cash closely, as BCHG's value is directly tied to it. Consider the potential impact of the new SEC Generic Listing Standards on BCHG's liquidity and market access, but be aware that the Trust currently lacks a redemption program, which could affect exit strategies.

Financial Highlights

debt To Equity

0.0

revenue

$0

operating Margin

N/A

total Assets

$217.980M

total Debt

$0

net Income

$15.019M

eps

N/A

gross Margin

N/A

cash Position

$0

revenue Growth

N/A

Key Numbers

• $217.980M — Total assets (Increased from $202.961 million on June 30, 2025, to September 30, 2025)
• $15.019M — Net increase in net assets from operations (For the three months ended September 30, 2025, compared to a $18.873 million decrease in 2024)
• $15.979M — Net change in unrealized appreciation on investment in BCH (For the three months ended September 30, 2025, reversing a $18.005 million depreciation in 2024)
• $4.63 — Principal Market NAV per Share (Increased from $4.31 on June 30, 2025, to September 30, 2025)
• 47,123,300 — Shares issued and outstanding (As of September 30, 2025, unchanged from June 30, 2025)
• $1.372M — Sponsor's Fee (For the three months ended September 30, 2025, up from $782 thousand in 2024)
• 389,821.38 — Quantity of BCH held (As of September 30, 2025, down from 392,285.63 on June 30, 2025)

Key Players & Entities

• Grayscale Bitcoin Cash Trust (BCH) (company) — registrant of the 10-Q filing
• Grayscale Investments Sponsors, LLC (company) — sole remaining sponsor of the Trust
• SEC (regulator) — approved new Generic Listing Standards on September 17, 2025
• Bitcoin Cash (other) — underlying asset held by the Trust
• Coinbase Custody Trust Company, LLC (company) — custodian of the Trust's BCH
• Continental Stock Transfer & Trust Company (company) — transfer agent for the Trust
• Digital Currency Group, Inc. (company) — parent company of the Sponsor
• Grayscale Securities, LLC (company) — sole Authorized Participant and affiliate of the Sponsor
• NYSE Arca (other) — exchange whose listing rules were amended by the SEC

FAQ

Risk Factors

• Volatility of Bitcoin Cash (BCH) Price [high — market]: The Trust's net assets are primarily composed of Bitcoin Cash (BCH). The fair value of BCH can be highly volatile, as evidenced by the net change in unrealized appreciation of $15.979 million in Q3 2025, which reversed a depreciation of $18.005 million in the prior year's quarter. Significant price drops in BCH could materially impact the Trust's net asset value.
• Reliance on Sponsor and Custodian [medium — operational]: The Trust relies on Grayscale as its sponsor and a qualified custodian for the safekeeping of its BCH. Any operational failures, security breaches, or financial instability of the sponsor or custodian could negatively affect the Trust's ability to operate and protect its assets.
• Evolving Regulatory Landscape [medium — regulatory]: The regulatory environment for digital assets is still developing. Changes in regulations, including the SEC's approval of new Generic Listing Standards on September 17, 2025, could impact the Trust's operations, compliance, and market access. While the Sponsor believes BCHG's shares would qualify for these new standards, future regulatory actions remain a risk.
• Sponsor's Fee Impact [medium — financial]: The Sponsor's Fee, a related party expense, increased to $1.372 million for the three months ended September 30, 2025, up from $782 thousand in the same period last year. This represents a significant increase in operating expenses, which directly reduces the net assets available to shareholders.
• BCH Used for Expenses [medium — operational]: The Trust's holdings of BCH decreased from 392,285.63 on June 30, 2025, to 389,821.38 on September 30, 2025. This indicates that BCH was sold to cover operational expenses, including the Sponsor's Fee. Continuous use of the underlying asset for expenses can erode the principal value over time.

Industry Context

The digital asset trust market continues to evolve, with increasing regulatory scrutiny and evolving investor interest. Competitors in the crypto-trust space face challenges related to asset volatility, custody risks, and the need for clear regulatory frameworks. Recent approvals of generic listing standards suggest a move towards greater integration and potential for broader market access for such products.

Regulatory Implications

The SEC's approval of new Generic Listing Standards on September 17, 2025, presents a potential opportunity for BCHG to improve its market accessibility and liquidity. However, the broader regulatory landscape for digital assets remains dynamic, and future rule changes could introduce new compliance burdens or operational constraints.

What Investors Should Do

1. [object Object]
2. [object Object]
3. [object Object]
4. [object Object]

Key Dates

• 2025-09-30: End of Q3 2025 — Reported total assets of $217.980 million and a net increase in net assets from operations of $15.019 million.
• 2025-09-17: SEC approved new Generic Listing Standards — Potentially improves future liquidity and market access for BCHG shares if they qualify.
• 2025-09-30: Principal Market NAV per Share — Increased to $4.63 from $4.31 on June 30, 2025, reflecting positive performance.
• 2025-06-30: End of Q2 2025 — Reported total assets of $202.961 million and Principal Market NAV per Share of $4.31.
• 2024-09-30: End of Q3 2024 — Reported a net decrease in net assets from operations of $18.873 million and a net change in unrealized depreciation of $18.005 million.

Glossary

Net assets

The total value of a company's assets minus its liabilities. For a trust, it represents the value attributable to shareholders. (Represents the overall value of the Grayscale Bitcoin Cash Trust available to its shareholders.)

Principal Market NAV per Share

The Net Asset Value (NAV) per share calculated based on the primary market where the trust's shares are traded. (Indicates the per-share value of the Trust's underlying assets, a key metric for investors.)

Sponsor's Fee

A fee paid to the entity that sponsors and manages the trust, typically for operational and administrative services. (A direct expense that reduces the net assets of the Trust; its increase is a notable factor in the current period.)

Net change in unrealized appreciation (depreciation)

The change in value of an investment that has not yet been sold, reflecting market fluctuations. (Crucial for understanding the impact of BCH price movements on the Trust's overall asset value.)

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. (The valuation method used for the Trust's Bitcoin Cash holdings, directly impacting reported asset values.)

Year-Over-Year Comparison

Compared to the three months ended September 30, 2024, the Grayscale Bitcoin Cash Trust (BCHG) has shown a significant turnaround in operational performance. Net assets from operations swung from a decrease of $18.873 million to an increase of $15.019 million. This improvement was driven by a reversal in the net change in unrealized appreciation on BCH, moving from a $18.005 million loss to a $15.979 million gain. However, operating expenses, specifically the Sponsor's Fee, have risen substantially, increasing from $782 thousand to $1.372 million, which partially offsets the gains from asset appreciation.

Filing Documents

• bchg-20250930.htm (10-Q) — 954KB
• bchg-ex31_1.htm (EX-31.1) — 25KB
• bchg-ex31_2.htm (EX-31.2) — 25KB
• bchg-ex32_1.htm (EX-32.1) — 8KB
• bchg-ex32_2.htm (EX-32.2) — 8KB
• img198299860_0.jpg (GRAPHIC) — 861KB
• img198299860_1.jpg (GRAPHIC) — 761KB
• img198299860_2.jpg (GRAPHIC) — 633KB
• 0001193125-25-266849.txt ( ) — 8609KB
• bchg-20250930.xsd (EX-101.SCH) — 316KB
• bchg-20250930_htm.xml (XML) — 454KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Statements of Assets and Liabilities at September 30, 2025 and June 30, 2025 4 Schedules of Investment at September 30, 2025 and June 30, 2025 5 Statements of Operations for the Three Months Ended September 30, 2025 and 2024 6 Statements of Changes in Net Assets for the Three Months Ended September 30, 2025 and 2024 7 Notes to the Unaudited Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 23 Item 4.

Controls and Procedures

Controls and Procedures 23

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 25 Item 3. Defaults Upon Senior Securities 25 Item 4. Mine Safety Disclosures 25 Item 5. Other Information 25 Item 6. Exhibits 26 GLOSSARY OF DEFINED TERMS 27

SIGNATURES

SIGNATURES 31 2 Forw ard-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Bitcoin Cash Trust (BCH) (the "Trust"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust's operations, the plans of Grayscale Operating, LLC ("GSO"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025, and Grayscale Investments Sponsors, LLC ("GSIS"), the co-sponsor of the Trust from January 1, 2025 to May 3, 2025 and the sole remaining sponsor thereafter (each of GSO and GSIS, the "Sponsor", as the context may require, and GSO and GSIS, together, the "Co-Sponsors"), and references to the Trust's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I, Item 1A. Risk Factors" of our Annual Report on Form 10-K for t

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION:

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) GRAYSCALE BITCOIN CASH TRUST (BCH) STATEMENTS OF ASSET S AND LIABILITIES (UNAUDITED) ( Amounts in thousands, except Share and per Share amounts) September 30, 2025 June 30, 2025 Assets: Investment in BCH, at fair value (cost $ 151,882 and $ 152,842 as of September 30, 2025 and June 30, 2025, respectively) $ 217,980 $ 202,961 Total assets $ 217,980 $ 202,961 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 217,980 $ 202,961 Shares issued and outstanding, no par value (unlimited Shares authorized) 47,123,300 47,123,300 Principal Market NAV per Share $ 4.63 $ 4.31 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE BITCOIN CASH TRUST (BCH) SCHEDULES OF INVESTMENT (UNAUDITED) ( Amounts in thousands, except quantity of BCH and percentages) September 30, 2025 Quantity of BCH Cost Fair Value % of Net Assets Investment in BCH 389,821.38057085 $ 151,882 $ 217,980 100 % Total Investment $ 151,882 $ 217,980 100 % Net assets $ 217,980 100 % June 30, 2025 Quantity of BCH Cost Fair Value % of Net Assets Investment in BCH 392,285.62958128 $ 152,842 $ 202,961 100 % Total Investment $ 152,842 $ 202,961 100 % Net assets $ 202,961 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE BITCOIN CASH TRUST (BCH) STATEMENTS OF OPERATIONS (UNAUDITED) ( Amounts in thousands) Three Months Ended September 30, 2025 2024 Investment income: Investment income $ - $ - Expenses: Sponsor's Fee, related party 1,372 782 Net investment loss ( 1,372 ) ( 782 ) Net realized and unrealized gain (loss) from: Net realized gain (loss) on investment in BCH 412 ( 86 ) Net change in unrealized appreciation (depreciation) on investment in BCH