Company: ZCSH
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035469
Chunk: 168

Company: Grayscale Zcash Trust (ZEC)
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1A
Chunk 168
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 for purchase; 

•An active derivatives market for ZEC or for digital assets generally;

•A determination that ZEC is a security or changes in ZEC’s status under the federal securities laws;

•Monetary policies of governments, trade restrictions, currency devaluations and revaluations and regulatory measures or enforcement actions, if any, that restrict the use of ZEC as a form of payment or the purchase of ZEC on the Digital Asset Markets; 

•Global or regional political, economic or financial conditions, events and situations, such as the novel coronavirus outbreak; 

•Fees associated with processing a ZEC transaction and the speed at which ZEC transactions are settled; 

•Interruptions in service from or closures or failures of major Digital Asset Trading Platforms; 

•Decreased confidence in Digital Asset Trading Platforms due to the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms; 

•Increased competition from other forms of digital assets or payment services; and 

•The Trust’s own acquisitions or dispositions of ZEC, since there is no limit on the amount of ZEC that the Trust may acquire. 

In addition, there is no assurance that ZEC will maintain its value in the long or intermediate term. In the event that the price of ZEC declines, the Sponsor expects the value of the Shares to decline proportionately. 

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The value of a ZEC as represented by the Index Price or by the Trust’s principal market may also be subject to momentum pricing due to speculation regarding future appreciation in value, leading to greater volatility that could adversely affect the value of the Shares. Momentum pricing typically is associated with growth stocks and other assets whose valuation, as determined by the investing public, accounts for future appreciation in value, if any. The Sponsor believes that momentum pricing of ZEC has resulted, and may continue to result, in speculation regarding future appreciation in the value of ZEC, inflating and making the Index Price more volatile. As a result, ZEC may be more likely to fluctuate in value due to changing investor confidence, which could impact future appreciation or depreciation in the Index Price and could adversely affect the value of the Shares. 

Due to the largely unregulated nature and lack of transparency surrounding the operations of Digital Asset Trading Platforms, they may experience fraud, market manipulation, business failures, security failures or operational problems, which may adversely affect the value of ZEC and, consequently, the value of the Shares. 

Digital Asset Trading Platforms are relatively new and,