blockchain, bitcoin, grayscale

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

The amount of assets under control for the Bitcoin Cash Trust of crypto fund manager Grayscale Investments dropped $1.6 million after the announcement that the crypto asset would fork on Nov. 15.

The Bitcoin Cash (BCH) network has now split into two blockchains, according to data from Coin Dance. At present, the community-driven Bitcoin Cash Node, or BCHN, appears to be favouring miner intervention. The pool of Binance’s Crypto exchange was responsible for mining block 661,647, the last common block before the fork.

Miners had mined approximately 27 blocks for BCHN at the time of publication and none for Bitcoin ABC, or BCHA.

Crypto sending more BCH via exchanges

In general, crypto users have been sending more BCH through exchanges since the Nov. 15 fork was announced, depositing more than $300 million of the tokens in November. Although Grayscale appeared to have added BCHG shares to its holdings at that time. The value of assets under management declined in its Bitcoin Cash Confidence. The company had $46.8 million in assets under control for the BCH trust on Friday. A decrease of $1.6 million since Nov. 9, according to updates posted to the Twitter account of the crypto fund manager.

The BCHN fork emerged in response to the announcement from Bitcoin ABC that it would implement a new “Coinbase law” diverting 8% of block rewards to a development fund operated by Amaury Sechet, the lead developer of BCHA. Proponents of BCHN have insisted the rule is not required, saying they can finance the blockchain without this creation or mining levy. BCHN’s supremacy had indicated that the fork would emerge as the dominant blockchain in addition to community support.

Although the price of Bitcoin Cash has encountered uncertainty since the fork was first revealed, on Oct. 23 it surged to more than $276 and has normally shifted between a price corridor of $230-$280 since dropping more than 26 percent in early September. Bitcoin Cash is currently trading at $245.87, dropping by 4% over the last 24 hours, while Bitcoin (BTC) has fallen to $15,903 under the $16,000 mark.