Company: ZCSH
Filing Date: 2025-11-26
Form Type: S-3
Source: 0001193125-25-298561
Chunk: 10

Company: Grayscale Zcash Trust (ZEC)
Filing Date: 2025-11-26
Form: S-3
Chunk 10
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 key. However, the zk-SNARK system itself relies certain key generation mechanisms that may also be susceptible to quantum computing attacks, resulting in a distinct overall quantum-risk profile for the Zcash network. See “Part I—Item 1. Business—Overview of the ZEC Industry and Market” in the Annual Report incorporated by reference herein.

Zcash has a current block size of approximately 2MB compared to maximum block size of approximately 4MB on the Bitcoin Network. Zcash blocks are generated every 1.3 minutes, which is approximately 8 times faster than Bitcoin’s block production. Due to a similar monetary supply curve to Bitcoin, Zcash halvings also take place approximately every four years, occurring every 210,000 blocks. Zcash’s mining difficulty is lower than Bitcoin’s, making it easier to mine blocks and earn rewards. Additionally, Zcash and Bitcoin both have a maximum supply of 21 million coins. As of September 30, 2025, Zcash had a circulating supply of 16.2 million ZEC which was less than Bitcoin’s circulating supply of approximately 19.9 million Bitcoin. As of September 30, 2025, the 24-hour trading volume of Zcash and Bitcoin were approximately $91.9 million and $17.0 billion, respectively. As of September 30, 2025, the aggregate market value of Zcash was $1,209.3 million as compared to the $2,272.9 billion aggregate value of Bitcoin. As of September 30, 2025, ZEC was the 72nd largest digital asset by market capitalization as tracked by
CoinMarketCap.com.

As of September 30, 2025, the Trust holds approximately 2.4% of the ZEC in circulation. In contrast to other protocols in which token holders participate in the governance of the network, ownership of ZEC confers no such rights. Therefore, the size of the Trust’s position does not itself enable the Sponsor or the Trust to participate in or otherwise influence the development of the Zcash Network. As a decentralized digital asset network, the Zcash Network consists of several stakeholders, including core developers of ZEC, users, services, businesses, miners and other constituencies, of which the Trust is only one constituent.

As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on ZEC per Share) to reflect the value of ZEC held by the Trust, determined by reference