Company: HZEN
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-017070
Chunk: 98

Company: Grayscale Horizen Trust (ZEN)
Filing Date: 2025-02-10
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 accessible, the Trust may be unable to access the ZEN controlled by the private key and the private key will not be capable of being restored by the Horizen Network. The processes by which ZEN transactions are settled are dependent on the ZEN peer-to-peer network, and as such, the Trust is subject to operational risk. A risk also exists with respect to previously unknown technical vulnerabilities, which may adversely affect the value of ZEN.The Trust relies on third-party service providers to perform certain functions essential to its operations. Any disruptions to the Trust’s service providers’ business operations resulting from business failures, financial instability, security failures, government mandated regulation or operational problems could have an adverse impact on the Trust’s ability to access critical services and be disruptive to the operations of the Trust.The Sponsor and the Trust may be subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business.

8. Financial Highlights Per Share Performance

        Three Months Ended December 31,

        2024

        2023

        Per Share Data:

        Principal market net asset value, beginning of period
         
        $
        0.70

        $
        0.68

        Net increase in net assets from investment operations:

        Net investment loss

        (0.01
        )

        (0.01
        )

        Net realized and unrealized gain

        1.77

        0.13

        Net increase in net assets resulting from operations

        1.76

        0.12

        Principal market net asset value, end of period
         
        $
        2.46

        $
        0.80

        Total return

        251.43
        %

        17.65
        %

        Ratios to average net assets:

        Net investment loss

        -2.50
        %

        -2.50
        %

        Expenses

        -2.50
        %

        -2.50
        %
       
      Ratios of net investment loss and expenses to average net assets have been annualized.An individual shareholder’s return, ratios, and per Share performance may vary from those presented above based on the timing of Share transactions. The amount shown for a Share outstanding throughout the period may not correlate with the Statement of Operations for the period due to the number of Shares issued in Creations occurring at an operational value derived from an operating metric as defined in the Trust Agreement.Total return is calculated assuming an initial