Grayscale Bitcoin Cash Trust (BCH), a digital currency investment product, has announced the private sale of 530,900 shares to accredited investors, according to a recent 8-K filing submitted to the U.S. Securities and Exchange Commission. These shares were sold at varying prices based on the Trust's Net Asset Value (NAV) per Share, resulting in the accumulation of 4,533.49755324 Bitcoin Cash (BCH), valued at approximately $1.74 million.
The private placement transactions, which are exempt from the standard registration requirements under the Securities Act pursuant to Rule 506(c), were facilitated by Grayscale Securities, LLC, acting as the Authorized Participant. Following this sale, the total number of issued and outstanding shares of Grayscale Bitcoin Cash Trust stands at 40,366,000 as of Tuesday.
Grayscale Securities, in its role as the Authorized Participant, is responsible for the creation and distribution of the shares. Due to the ongoing issuance of shares, Grayscale Securities may be considered an "underwriter" within the meaning of the Securities Act. It is noted that no underwriting discounts or commissions were paid in connection with these sales.
The Grayscale Bitcoin Cash Trust allows investors to gain exposure to the price movement of Bitcoin Cash without the challenges of buying, storing, and safekeeping Bitcoin Cash directly. The Trust operates as a traditional investment vehicle with shares titled in the investor's name, providing a familiar structure for financial and tax advisors and easy transferability to beneficiaries under estate laws.
The Trust's sponsor, Grayscale Investments, LLC, has confirmed the details of the share issuance through the signature of Edward McGee, Chief Financial Officer, on the SEC filing dated July 2, 2024. This information is based solely on the press release statement provided in the SEC filing.
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