Company: ZCSH
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035469
Chunk: 226

Company: Grayscale Zcash Trust (ZEC)
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1B
Chunk 226
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 Shares quoted on OTCQX have not reflected the value of the ZEC 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.

    As of December 31,

    2024

    2023

    2022

    Number of Shares authorized
     
    Unlimited

    Unlimited

    Unlimited

    Number of Shares outstanding

    4,700,500

    3,777,700

    3,777,700

    Number of Shares freely tradable(1)

    3,892,425

    3,068,959

    3,068,959

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

    44

    40

    44

    Number of holders of record(2)

    44

    40

    44

(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. 

Critical Accounting Policies and Estimates 

Investment Transactions and Revenue Recognition 

The Trust considers investment transactions to be the receipt of ZEC for Share creations and the delivery of ZEC for Share redemptions or for payment of expenses in ZEC. At this time, the Trust is not accepting redemption requests from shareholders. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in ZEC. 

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