Company: ZCSH
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0000950170-25-035469
Chunk: 110

Company: Grayscale Zcash Trust (ZEC)
Filing Date: 2025-03-07
Form: 10-K
Item: Item 1
Chunk 110
---
 U.S. federal income tax purposes, each delivery or sale of ZEC, Incidental Rights and IR Virtual Currency by the Trust for the payment of expenses will be a taxable event to shareholders. See “—Material U.S. Federal Income Tax Consequences—Tax Consequences to U.S. Holders.” 

31 

Hypothetical Expense Example 

The following table illustrates the anticipated impact of the payment of the Trust’s expenses on the amount of ZEC represented by each outstanding Share for three years, assuming that the Trust does not make any payments using any Incidental Rights and/or IR Virtual Currency. It assumes that the only transfers of ZEC will be those needed to pay the Sponsor’s Fee and that the price of ZEC and the number of Shares remain constant during the three-year period covered. The table does not show the impact of any Additional Trust Expenses. Any Additional Trust Expenses, if and when incurred, will accelerate the decrease in the fractional amount of ZEC represented by each Share. In addition, the table does not show the effect of any waivers of the Sponsor’s Fee that may be in effect from time to time. 

    Year

    1

    2

    3

    Hypothetical price per ZEC
     
    $
    100.00

    $
    100.00

    $
    100.00

    Sponsor’s Fee

    2.50
    %

    2.50
    %

    2.50
    %

    Shares of Trust, beginning

    100,000.00

    100,000.00

    100,000.00

    ZEC in Trust, beginning

    10,000.00

    9,750.00

    9,506.25

    Hypothetical value of ZEC in Trust
     
    $
    1,000,000.00

    $
    975,000.00

    $
    950,625.00

    Beginning NAV of the Trust
     
    $
    1,000,000.00

    $
    975,000.00

    $
    950,625.00

    ZEC to be delivered to cover the Sponsor’s Fee

    250.00

    243.75

    237.66

    ZEC in Trust, ending

    9,750.00

    9,506.