# Grayscale Horizen Trust (ZEN)

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/Grayscale Horizen Trust (ZEN)).

## Overview

Grayscale Horizen Trust (ZEN) is a Delaware statutory trust that holds Horizen (ZEN) and issues exchangeable shares designed to give investors indirect exposure to the token’s market price. It does not operate the Horizen network or run an active business; its core function is to custody ZEN, track its fair value, and provide a tradable investment wrapper on OTCQX under the ticker HZEN.

## Products & services

• Passive trust vehicle holding Horizen (ZEN)
• OTCQX-listed shares representing fractional beneficial interests
• Creation basket issuance for accredited investors
• NAV and fair value tracking based on ZEN market prices
• Custodied digital asset exposure via Coinbase Custody Trust Company

- **Digital asset trust shares** (100%) — Shares that provide indirect exposure to the value of ZEN held by the Trust.
- **Custody and administration** (0%) — Safekeeping of ZEN and administrative support through the sponsor/custodian structure.

- Passive trust vehicle holding Horizen (ZEN)
- OTCQX-listed shares representing fractional beneficial interests
- Creation basket issuance for accredited investors
- NAV and fair value tracking based on ZEN market prices
- Custodied digital asset exposure via Coinbase Custody Trust Company

## Customers

The Trust’s investors are accredited investors and public-market participants who want exposure to ZEN without directly holding or managing the token. Shares are quoted on OTCQX, so the product is aimed at investors who prefer a brokerage-account format over direct wallet custody. The Trust also relies on authorized participants and liquidity providers to create shares and support market access.

- **Accredited investors** (primary) — Buy HZEN shares to gain regulated, brokerage-style exposure to ZEN without direct token custody.
- **Secondary-market traders** (primary) — Trade HZEN on OTCQX for price exposure, arbitrage, or portfolio allocation.
- **Authorized participants** (secondary) — Create shares by delivering ZEN to the Trust and help maintain market access and liquidity.
- **Liquidity providers** (secondary) — Facilitate trading and market-making in the shares and underlying ZEN markets.

- Accredited investors seeking indirect ZEN exposure
- OTCQX market participants trading HZEN shares
- Authorized participants creating baskets with ZEN deposits
- Liquidity providers supporting secondary-market trading
- Investors preferring brokerage access over self-custody

## Geography

The Trust is organized in Delaware and operates as a U.S.-based investment vehicle, with shares quoted on OTCQX in the United States. Its economic exposure is global because ZEN trades on digital asset platforms and the value of the Trust depends on worldwide market demand for Horizen, not on a single operating geography. Custody and administration are tied to U.S.-based service providers, while the underlying token market is international and highly fragmented.

- U.S.-domiciled Delaware statutory trust
- OTCQX listing gives U.S. market access
- ZEN pricing depends on global digital asset exchanges
- Custody and administration are centered in U.S. service providers
- No disclosed country revenue split because the Trust is not an operating business

## Strategy

The Trust’s strategy is to maintain a passive structure that closely tracks the market value of ZEN through share creations and fair-value accounting. It periodically reviews the principal market for ZEN and relies on market liquidity, price stability, and access to trading venues to support valuation and investor access. The July 2025 migration of Horizen to Base changes the token’s ecosystem context, but the Trust itself remains focused on holding ZEN and providing a convenient investment wrapper.

- **Maintain accurate fair-value tracking** (short-term) — The Trust’s investment proposition depends on shares reflecting ZEN’s market value as closely as possible.
- **Preserve market access and liquidity** (medium-term) — Secondary-market trading and creation activity are necessary for investor usability and price discovery.
- **Adapt to Horizen ecosystem changes** (medium-term) — Network migrations and protocol changes can affect token utility, acceptance, and market demand.

- Track ZEN value through a passive trust structure
- Use fair-value pricing and principal-market analysis
- Support investor access through OTCQX-listed shares
- Rely on creation baskets rather than active portfolio management
- Monitor market liquidity and venue quality for valuation

## Risks

The Trust is exposed almost entirely to ZEN price volatility, network adoption risk, and changes in digital-asset market sentiment. Because it is a passive vehicle with no operating diversification, any decline in ZEN demand, exchange access, or custody arrangements can directly impair share value and could even force termination if the custodian is lost.

- **Extreme ZEN price volatility** [high] — The Trust’s value is a direct function of the market price of ZEN, which can move sharply and unpredictably.
- **Protocol or cryptography failure** [high] — A flaw in the Horizen network or underlying cryptography could impair token utility and investor confidence.
- **Regulatory and exchange delisting risk** [high] — Privacy-related features may attract AML/sanctions concerns and lead trading platforms to restrict access.
- **Custodian or sponsor failure** [high] — The Trust depends on third-party service providers; loss of custody or sponsorship can trigger termination.

- ZEN price volatility directly drives Trust share value
- Protocol or cryptography flaws could reduce confidence in ZEN
- Privacy features may trigger delistings or regulatory scrutiny
- Custodian or sponsor disruption could force early termination
- Digital asset market acceptance remains uncertain and cyclical

## Accounting

The Trust accounts for ZEN at fair value, so reported results are dominated by unrealized gains and losses rather than operating revenue. Share creations and any ZEN used to pay expenses or sponsor fees are recorded as investment transactions, and the Trust uses a specific-identification method for realized gains and losses. Because it is a passive vehicle, small changes in ZEN price or principal-market assumptions can materially change reported net assets and period results.

- **Fair value measurement of ZEN** — NAV and unrealized gain/loss volatility
- **Principal market determination** — Reference rate and reported fair value
- **Realized gains/losses on sponsor-fee settlements** — Reported realized gain/loss and expense presentation
- **Trade-date accounting for creations** — Quarterly asset and share-count movements

- Fair value accounting drives reported gains and losses
- Principal market selection affects NAV and valuation
- Share creations are recorded at trade-date fair value
- Sponsor fees paid in ZEN create realized gains/losses
- No redemption requests currently accepted

---

*Last updated: 2026-04-28T20:12:13.465010+00:00*