Grayscale’s BCH trust loses $1.6M
The value of AUM for crypto fund manager Grayscale’s Bitcoin Cash Trust investment has dropped $1.6 million. Currently, the total AUM is at $9.8 billion, with Bitcoin Trust holding the most value.
11/13/20 UPDATE: Net Assets Under Management, Holdings per Share, and Market Price per Share for our Investment Products.
— Grayscale (@Grayscale) November 13, 2020
As per Coin.Dance, Bitcoin Cash has split into two separate blockchains with activity tending towards BCHN. Data also shows that Binance was responsible for mining the last block before the fork happened.
Moreover, miners have mined almost 30 blocks on the BCHN blockchain while none for Bitcoin Cash ABC or BCHA have been mined. The BCHN forked as a result of Bitcoin ABC’s view to begin a concept dubbed the “Coinbase rule”. According to CoinGecko, BCHN price is at $249, at the time of writing.
Since the announcement of the Bitcoin Cash hard fork, BCH has seen more action on exchanges with more than $300 million worth of the cryptocurrency deposited in November. However, Grayscale has added to its holdings of BCHG, the value of the funds under management has dropped.
Moreover, 8% of block rewards will be sent automatically to a development fund managed by Amaury Sechet, the BCHA lead developer. Major advocates for the BCHN blockchain believe that this is not necessary and that the mining tax is not needed to develop the improvement of blockchain.
This massive drop in price does not spread a bad impact on the altcoins. Once the network settles, the Bitcoin fork could see a recovery in price. Moreover, the volatility in cryptocurrency is common, and bullish Bitcoin activity explains that the rest of the market faces positive inclination.