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Item 7. Management’s Discussion and Analysis

2026-09-03 compared with 2025-09-05 · 30 added, 98 removed, 104 unchanged (55% of the section changed)

10 unchanged sentences

While an investment in the Shares is not a direct investment in BCH, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to BCH.

To date, the Trust has not met its investment objective and the Shares quoted on OTCQX have not reflected the value of the BCH held by the Trust, less the Trust’s expenses and other liabilities, but instead have traded at both premiums and discounts to such value, which at times have been substantial .

To date, the Trust has not met its investment objective and the Shares quoted on OTC Markets have not reflected the value of the BCH held by the Trust, less the Trust’s expenses and other liabilities, but instead have traded at both premiums and discounts to such value, which at times have been substantial .

The Trust is not managed like a business corporation or an active investment vehicle.

The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.

The Trust is not managed like a business corporation or an active investment vehicle.

As of June 30,

Number of Shares authorized

Number of Shares outstanding

Number of Shares freely tradable (1)

Number of beneficial holders owning at least 100 Shares (2)

Number of holders of record (2)

(1) Includes the total number of Shares that are not restricted securities as such term is defined under Rule 144.

(2) Includes Cede & Co.

as nominee for DTC for the Shares traded on OTCQX but not its direct participants.

Therefore, this number does not include the individual holders who have bought/sold Shares on OTCQX or transferred their eligible Shares to their brokerage accounts.

Prior to October 1, 2025, the Trust valued the BCH held by the Trust for operational purposes by reference to the CoinDesk Bitcoin Cash Price Index (BCX).

As of October 1, 2025, the Index is the CoinDesk Bitcoin Cash Benchmark Rate which is used to calculate the NAV and NAV per Share.

Prior to October 1, 2025, references to the “Index” in the Trust’s filings with the SEC, including this Annual Report on Form 10-K, refer to the CoinDesk Bitcoin Cash Price Index (BCX).

From and after October 1, 2025, references to the “Index” in the Trust’s filings with the SEC are to the CoinDesk Bitcoin Cash Benchmark Rate.

Critical Accounting Policies and Estimates

Investment Transactions and Revenue Recognition

The Trust considers investment transactions to be the receipt of BCH for Share creations and the delivery of BCH for Share redemptions or for payment of expenses in BCH.

The Trust considers investment transactions to be the receipt of BCH by the Trust in connection with Share creations and the delivery of BCH by the Trust in connection with Share redemptions or for payment of expenses in BCH.

At this time, the Trust is not accepting redemption requests from shareholders.

3 unchanged sentences

Principal Market and Fair Value Determination

To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s net asset value in accordance with U.S.

GAAP (“Principal Market NAV”), the Trust follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820-10, Fair Value Measurement , which outlines the application of fair value accounting.

To determine which market is the Trust’s principal market (or in the absence of a principal market, the most advantageous market) for purposes of calculating the Trust’s Principal Market NAV, the Trust follows FASB ASC Topic 820-10, Fair Value Measurement , which outlines the application of fair value accounting.

ASC 820-10 determines fair value to be the price that would be received for BCH in a current sale, which assumes an orderly transaction between market participants on the measurement date.

3 unchanged sentences

Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets.

The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market,

Principal-to-Principal Markets and Exchange Markets (referred to as “Trading Platform Markets” in this Annual Report), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”).

The Authorized Participant(s), or a Liquidity Provider, may transact in Digital Asset Markets.

In determining which of the eligible Digital Asset Markets is the Trust’s principal market, the Trust reviews these criteria in the following order:

• First, the Trust reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with anti-money laundering (“AML”) and know-your-customer (“KYC”) regulations, and non-Digital Asset Trading Platform Markets that the Trust reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market.

• First, the Trust reviews a list of Digital Asset Markets that maintain practices and policies designed to comply with AML and KYC regulations, and non-Digital Asset Trading Platform Markets that the Trust reasonably believes are operating in compliance with applicable law, including federal and state licensing requirements, based upon information and assurances provided to it by each market.

• Second, the Trust sorts these Digital Asset Markets from high to low by market-based volume and level of activity of BCH traded on each Digital Asset Market in the trailing twelve months.

5 unchanged sentences

The Trust determines its principal market (or in the absence of a principal market the most advantageous market) annually and conducts a quarterly analysis to determine (i) if there have been recent changes to each Digital Asset Market’s trading volume and level of activity in the trailing twelve months, (ii) if any Digital Asset Markets have developed that the Trust has access to, or (iii) if recent changes to each Digital Asset Market’s price stability have occurred that would materially impact the selection of the principal market and necessitate a change in the Trust’s determination of its principal market.

The cost basis of the BCH received by the Trust in connection with a creation order is recorded by the Trust at the fair value of BCH at 4:00 p.m., New York time, on the creation date for financial reporting purposes.

The cost basis recorded by the Trust may differ from proceeds collected by the Authorized Participant from the sale of the corresponding Shares to investors.

Investment Company Considerations

7 unchanged sentences

Financial Highlights for the Years Ended June 30, 2026, 2025 and 2024

(All amounts in the following table and the subsequent paragraphs, except Share, per Share, BCH and price of BCH amounts, are in thousands)

(All amounts in the following table and the subsequent paragraphs, except Share, BCH and price of BCH amounts, are in thousands)

For the Years Ended June 30,

Net realized and unrealized gain on investment

Net increase in net assets resulting from operations

Net realized and unrealized (loss) gain on investment

Net (decrease) increase in net assets resulting from operations

Net assets (1)

1 unchanged sentence

GAAP based on the Digital Asset Market price of BCH on the Digital Asset Trading Platform that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.

Net realized and unrealized gain on investment in BCH for the year ended June 30, 2025 was $48,629, which includes a realized loss of ($17) on the transfer of BCH to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in BCH of $48,646.

Net realized and unrealized gain on investment in BCH for the year was driven by BCH price appreciation from $391.88 per

BCH as of June 30, 2024, to $517.38 per BCH as of June 30, 2025.

Net increase in net assets resulting from operations was $44,964 for the year ended June 30, 2025, which consisted of the net realized and unrealized gain on investment in BCH, less the Sponsor’s Fee of $3,665.

Net assets increased to $202,961 at June 30, 2025, a 50% increase for the year.

The increase in net assets resulted from the aforementioned BCH price appreciation and the contribution of approximately 57,238 BCH with a value of $22,983 to the Trust in connection with Share creations during the year, partially offset by the withdrawal of approximately 9,481 BCH to pay the foregoing Sponsor’s Fee.

Net realized and unrealized gain on investment in BCH for the year ended June 30, 2024 was $22,755, which includes a realized loss of ($450) on the transfer of BCH to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in BCH of $23,205.

Net realized and unrealized loss on investment in BCH for the year ended June 30, 2026 was ($121,592), which includes a realized gain of $1,037 on the transfer of BCH to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in BCH of ($122,629).

Net realized and unrealized loss on investment in BCH for the year was driven by BCH price depreciation from $517.38 per BCH as of June 30, 2025, to $200.10 per BCH as of June 30, 2026.

Net decrease in net assets resulting from operations was ($126,403) for the year ended June 30, 2026, which consisted of the net realized and unrealized loss on investment in BCH, plus the Sponsor’s Fee of $4,811.

Net assets decreased to $76,558 at June 30, 2026, a 62% decrease for the year.

The decrease in net assets resulted from the aforementioned BCH price depreciation and the withdrawal of approximately 9,686 BCH to pay the foregoing Sponsor’s Fee.

Net realized and unrealized gain on investment in BCH for the year was driven by BCH price appreciation from $391.88 per BCH as of June 30, 2024, to $517.38 per BCH as of June 30, 2025.

1 unchanged sentence

Net assets increased to $202,961 at June 30, 2025, a 50% increase for the year.

The increase in net assets resulted from the aforementioned BCH price appreciation and the contribution of approximately 47,623 BCH with a value of $22,716 to the Trust in connection with Share creations during year, partially offset by the withdrawal of approximately 7,759 BCH to pay the foregoing Sponsor’s Fee.

Net realized and unrealized gain on investment in BCH for the year ended June 30, 2023 was $61,733, which includes a realized loss of ($1,946) on the transfer of BCH to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in BCH of $63,679.

The increase in net assets

resulted from the aforementioned BCH price appreciation and the contribution of approximately 57,238 BCH with a value of $22,983 to the Trust in connection with Share creations during the year, partially offset by the withdrawal of approximately 9,481 BCH to pay the foregoing Sponsor’s Fee.

Net realized and unrealized gain on investment in BCH for the year was driven by BCH price appreciation from $302.01 per BCH as of June 30, 2023, to $391.88 per BCH as of June 30, 2024.

1 unchanged sentence

Net assets increased to $135,014 at June 30, 2024, a 47% increase for the year.

The increase in net assets resulted from the aforementioned BCH price appreciation, partially offset by the withdrawal of approximately 7,713 BCH to pay the foregoing Sponsor’s Fee.

Cash Resources and Liquidity

7 unchanged sentences

Selected Operating Data

For the Years Ended June 30,

(All BCH balances are rounded to the nearest whole BCH)

Opening balance

Sponsor’s Fee, related party

Closing balance

Accrued but unpaid Sponsor’s Fee, related party

Net closing balance

Number of Shares:

Opening balance

Closing balance

As of June 30,

1 unchanged sentence

Principal Market NAV per Share (1)

Index Price (3)

Principal Market NAV (1)

NAV per Share (2)

(1) The Trust performed an assessment of the principal market at June 30, 2025, 2024 and 2023, and identified the principal market as Coinbase.

(2) As of June 30, 2025, 2024 and 2023, the Principal Market NAV per Share was calculated using the fair value of BCH based on the price provided by Coinbase, the Digital Asset Trading Platform that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.

Prior to February 7, 2024, Principal Market NAV was referred to as NAV and Principal Market NAV per Share was referred to as NAV per Share.

(3) The Trust’s NAV per Share is derived from the Index Price as represented by the Index as of 4:00 p.m., New York time, on the valuation date.

(1) The Principal Market NAV and Principal Market NAV per Share are calculated using the fair value of BCH based on the price provided by the Digital Asset Trading Platform that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date, in accordance with U.S.

(2) The Trust’s NAV and NAV per Share are derived from the Index Price as represented by the Index as of 4:00 p.m., New York time, on the valuation date.

The Trust’s NAV per Share is calculated using a non-GAAP methodology where the price is derived from multiple Digital Asset Trading Platforms.

Prior to February 7, 2024, NAV was referred to as Digital Asset Holdings and NAV per Share was referred to as Digital Asset Holdings per Share.

The Constituent Trading Platforms as of June 30, 2026 were Binance, Bitstamp by Robinhood, Bullish, Bybit, Crypto.com, Gate, Gemini, Kraken, LMAX Digital and OKX.

The Constituent Trading Platforms as of June 30, 2025 were Coinbase, Bitstamp by Robinhood, Kraken, LMAX Digital and Crypto.com.

The Constituent Trading Platforms as of June 30, 2024 were Coinbase, Bitstamp by Robinhood, Kraken, and LMAX Digital.

Business—Overview of the BCH Industry and Market—BCH Value—The Index and the Index Price” for a description of the Index and the Index Price.

The Digital Asset Trading Platforms included in the Index (the “Constituent Trading Platforms”) as of June 30, 2025 were Coinbase, Bitstamp, Kraken, LMAX Digital and Crypto.com.

The Digital Asset Trading Platforms included in the Index as of June 30, 2024 were Coinbase, Kraken Bitstamp and LMAX Digital.

The Digital Asset Trading Platforms included in the Index as of June 30, 2023 were Coinbase, Kraken and Cboe Digital.

For accounting purposes, the Trust reflects creations and the BCH receivable with respect to such creations on the date of receipt of a notification of a creation but does not issue Shares until the requisite amount of BCH is received.

1 unchanged sentence

Subject to receipt of regulatory approval from the SEC and approval by the Sponsor in its sole discretion, the Trust may in the future operate a redemption program.

The Trust currently has no intention of seeking regulatory approval to operate an ongoing redemption program.

As of June 30, 2025, the Trust had a net closing balance with a value of $202,846,976, based on the Index Price (non-GAAP methodology).

As of June 30, 2025, the Trust had a total market value of $202,960,739, based on the Digital Asset Market price of BCH on the Trust’s principal market (Coinbase).

As of June 30, 2024, the Trust had a net closing balance with a value of $135,031,069, based on the Index Price (non-GAAP methodology).

As of June 30, 2024, the Trust had a total market value of $135,013,842, based on the Digital Asset Market price of BCH on the Trust’s principal market (Coinbase).

As of June 30, 2023, the Trust had a net closing balance with a value of $92,094,095, based on the Index Price (non-GAAP methodology).

As of June 30, 2023, the Trust had a total market value of $92,011,836, based on the Digital Asset Market price of BCH on the Trust’s principal market (Coinbase).

Historical NAV and BCH Prices

6 unchanged sentences

The following table illustrates the movements in the Index Price from July 1, 2021 to June 30, 2026.

During such period, the Index Price has ranged from $96.49 to $1,465.90, with the straight average being $339.62 through June 30, 2025.

The Sponsor has not observed a material difference between the Index Price and average prices from the Constituent Trading Platforms individually or as a group.

8 unchanged sentences

The following table illustrates the movements in the Digital Asset Market price of BCH, as reported on the Trust’s principal market, from July 1, 2021 to June 30, 2026.

During such period, the price of BCH has ranged from $96.47 to $1,465.48, with the straight average being $339.66 through June 30, 2025:

Digital Asset Market Price

8 unchanged sentences

July 1, 2021 to June 30, 2026

Secondary Market Trading

The Trust’s Shares have been quoted on OTCQX under the symbol BCHG since August 18, 2020.

The price of the Shares as quoted on OTCQX has varied significantly from the NAV per Share.

From August 18, 2020 to June 30, 2025, the maximum premium of the closing price of the Shares quoted on OTCQX over the value of the Trust’s NAV per Share was 1,852%, the average premium was 238%, the maximum discount of the closing price of the Shares quoted on OTCQX below the value of the Trust's NAV per Share was 59%, and the average discount was 21%.

The closing price of the Shares, as quoted on OTCQX at 4:00 p.m., New York time, on each business day between August 18, 2020 and June 30, 2025, has been quoted at a discount on 612 days.

As of June 30, 2025, the last business day of the period, the Trust’s Shares were quoted on OTCQX at a discount of 10% to the Trust’s NAV per Share.

The following table sets out the range of high and low closing prices for the Shares as reported by OTCQX, the Trust’s Principal Market NAV per Share calculated in accordance with U.S.

GAAP and the Trust’s NAV per Share for each of the quarters of the prior three years.

Principal Market NAV per

NAV per Share (2)

Principal Market NAV per

NAV per Share (2)

Calendar Year 2022

Third quarter

Fourth quarter

Calendar Year 2023

First quarter

Second quarter

Third quarter

Fourth quarter

Calendar Year 2024

First quarter

Second quarter

Third quarter

Fourth quarter

Calendar Year 2025

First quarter

Second quarter

(1) The Principal Market NAV is calculated using the fair value of BCH based on the price provided by the Digital Asset Market that the Trust considers its principal market, which is Coinbase.

Prior to February 7, 2024, Principal Market NAV was referred to as NAV and Principal Market NAV per Share was referred to as NAV per Share.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Principal Market and Fair Value Determination.”

(2) The Trust’s NAV per Share is derived from the Index Price as represented by the Index as of 4:00 p.m., New York time, on the valuation date.

The Index Price is calculated using non-GAAP methodology and is not used in the Trust’s financial statements.

Prior to February 7, 2024, NAV was referred to as Digital Asset Holdings and NAV per Share was referred to as Digital Asset Holdings per Share.

Business—Valuation of BCH and Determination of NAV.”

The following chart sets out the historical closing prices for the Shares as reported by OTCQX and the Trust’s NAV per Share from August 18, 2020 to June 30, 2025.

The following chart sets out the historical closing prices for the Shares as reported by OTC Markets and the Trust’s NAV per Share from August 18, 2020 to June 30, 2026.

BCHG Premium/(Discount):

1 unchanged sentence

NAV per Share (Non-GAAP) ($)

The following chart sets out the historical premium and discount for the Shares calculated as a percentage of the historical closing prices for the Shares as reported by OTCQX and the Trust’s NAV per Share from August 18, 2020 to June 30, 2025.

The following chart sets out the historical premium and discount for the Shares calculated as a percentage of the historical closing prices for the Shares as reported by OTC Markets divided by the Trust’s NAV per Share from August 18, 2020 to June 30, 2026.

BCHG Premium/(Discount):

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis