Grayscale’s BCH trust loses $1.6M in value as hard fork begins

Published at: Nov. 15, 2020

The value of assets under management for crypto fund manager Grayscale Investments’ Bitcoin Cash Trust has fallen $1.6 million following the announcement that the crypto asset would be forking on Nov. 15. 

According to data from Coin Dance, the Bitcoin Cash (BCH) network has now split into two blockchains. Currently, miner action appears to be favoring the community-driven Bitcoin Cash Node, or BCHN. Crypto exchange Binance’s pool was responsible for mining block 661,647 — the last common block before the fork. 

At the time of publication, miners have mined roughly 27 blocks for BCHN and none for Bitcoin ABC, or BCHA.

Since the Nov. 15 fork was announced, crypto users have generally been sending more BCH through exchanges, depositing more than $300 million of the tokens in November. While Grayscale has seemingly added to its holdings of BCHG shares in that time, the value of assets under management in its Bitcoin Cash Trust has decreased. According to updates posted to the crypto fund manager’s Twitter account, the firm had $46.8 million in assets under management for the BCH trust on Friday, a drop of $1.6 million since Nov. 9.

The BCHN fork emerged in response to Bitcoin ABC’s announcement it would introduce a new “Coinbase rule” diverting 8% of block rewards to a development fund controlled by BCHA lead developer Amaury Sechet. Proponents of BCHN have insisted the rule is not needed, claiming they can fund the blockchain without this development or mining tax. BCHN’s dominance in addition to community support had suggested the fork would emerge as the dominant blockchain.

While the Bitcoin Cash price has experienced volatility since the fork was first announced, it surged to more than $276 on Oct. 23 and has generally been moving between a $230-$280 price corridor since falling more than 26% in early September. Bitcoin Cash is currently trading at $245.87, having fallen 4% in the last 24 hours, while Bitcoin (BTC) slipped under the $16,000 barrier to $15,903.

Tags
Business
Bitcoin Cash
Grayscale
Hard Fork
Fork
Related Posts
Altcoins book 50% gains after Bitcoin and Ethereum set a path to new highs
The bullish momentum across the cryptocurrency market continued to build on Friday as a market-wide rally lifted the prices of most altcoins and boosted Bitcoin (BTC) and Ether (ETH) above their respective resistance levels at $51,000 and $4,000, respectively. The recent price gains seen in the altcoin market show no sign of slowing down, and several altcoins gained more than 30% on Friday. Data from Cointelegraph Markets Pro and TradingView shows that the best performers over the past 24-hours were Polymath (POLY), Bitcoin Cash ABC (BCHA) and XYO Network. Polymath rallies as its “Polymesh” mainnet launch approaches Polymath is an …
Bitcoin / Sept. 3, 2021
Upstart Bitcoin Cash challenger BCHN gains miner majority ahead of fork
The potential Bitcoin Cash fork in November is looking increasingly likely, with 63% of the last 1,000 BCH blocks being mined using the community’s breakaway Bitcoin Cash Node (BCHN) implementation. BCHN appears to be ahead on multiple fronts. According to data published by Coin Dance, in total, roughly 82% of the hashrate on the Bitcoin Cash network are currently signaling support for BCHN, following recent support from the BTC.com and Antpool mining pools. And more than 700 of the Bitcoin Cash network’s 1,262 nodes support BCHN. That compares to just 516 running Bitcoin ABC — the historically dominant implementation of …
Altcoin / Sept. 25, 2020
1.5M Bitcoin Cash deposited on exchanges as fork looms
Bitcoin Cash (BCH) holders are scrambling to get their coins onto exchanges ahead of the hard fork expected for Nov. 15. According to Chainalysis, nearly $140 million worth of BCH has flowed onto exchanges in just the past week, bringing November’s total up to $300 million. Since the start of the month, more than 1.56 million BCH has been moved onto exchanges. As such, BCH inflows to exchanges for the past 12 days have equated to nearly 6.4% of Bitcoin Cash’s entire capitalization and supply. While some onlookers have inferred the sizable in-flows to indicate Bitcoin Cash holders are looking …
Altcoin / Nov. 12, 2020
Fork in the node: Bitcoin Cash Node on track to oust Bitcoin ABC
Bitcoin ABC, the historically dominant implementation of Bitcoin Cash (BCH), appears on the brink of giving way to a community-driven mutiny in the form of Bitcoin Cash Node (BCHN). According to Coin Dance more than 75% of nodes have signaled in favor of BCHN over the past week, while a meager 1% have shown support for ABC. There’s just over ten days left in the race. BCHN nodes mined 84.7% of Bitcoin Cash blocks produced in the last 24 hours, compared to just 1.4% for ABC. BCHN emerged in response to ABC’s announcement it would introduce a new “coinbase rule” …
Technology / Nov. 4, 2020
Hive Trades for 20% Premium Over Steem on Bittrex Crypto Exchange
After successfully forking from the Steem blockchain, Hive (HIVE) secured a listing on Bittrex — where it is trading for a 20% premium over Steem (STEEM). In a blow to Justin Sun, the cryptocurrency market appears to have chosen which chain it believes to be more valuable after Hive forked off from Steem on March 20. HIVE trades for 20% premium over Steem On Bittrex, HIVE is currently trading for $0.193, while STEEM is changing hands for roughly $0.154 on the same platform. HIVE’s 24-volume on Bittrex of $28,500 equates to 60% of Steem’s $49,500. In just a few days, …
Business / March 23, 2020