Tremendous arbitrage opportunity for professional traders on the BCHG fund. Pro traders can hedge and pocket the huge arbitrage premium. Subject to risks of course.


Google finance BCHG OTCMKTS:

Currently the BCHG fund is trading at $432-$470 per BCH while BCH is actually trading at $250 on spot markets.

This represents up to a 88% premium above spot market prices, which is the max the BCHG can even be worth (NAV value) once they open redemptions, when they convert it to an ETF.

So arbitrage can be done, by borrowing BCHG, shorting it, then buying spot of an equal amount of BCH to hedge the underlying assets, while pocketing the premium only. Eg.

1 ) sell 1 BCH worth of BCHG for $470.

2) Buy 1 BCH on spot for $250

3) Pay interest on the BCHG loan until the premium disappears.

4) Buy back the short when the price is nearly equal to spot, it could be at any price, so if BCHG rate goes to $250 and BCH is $250, buy back the short and sell spot and you profit $220 minus fees and interest.

Disclaimer: This requires advanced skill and knowledge of brokerages so only try this if you know what you are doing as this is not trading advice but speculation on what the heck is going on with BCHG crazy NAV premium.

Good luck.