# Grayscale Zcash Trust (ZEC)

> 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 Zcash Trust (ZEC)).

## Overview

Grayscale Zcash Trust (ZEC) is a Delaware statutory trust formed to hold Zcash (ZEC) and issue shares that give investors indirect exposure to the token’s price. It is a passive vehicle: it does not operate the Zcash network, use leverage or derivatives, and its shares trade on OTCQX under the ticker ZCSH.

## Products & services

• Grayscale Zcash Trust shares (OTCQX: ZCSH)
• Passive ZEC custody and holding vehicle
• Creation baskets issued for ZEC deposits
• Secondary-market exposure to Zcash price movements

- **Trust shares** (100%) — Common units of fractional undivided beneficial interest representing indirect ownership in the Trust's ZEC holdings.
- **Digital asset custody** (0%) — Safekeeping of ZEC through the Trust's custodian and secure vault structure.
- **Creation and redemption mechanics** (0%) — Issuance of baskets against ZEC deposits and, when permitted, redemptions in reverse.

- Grayscale Zcash Trust shares (OTCQX: ZCSH)
- Passive ZEC custody and holding vehicle
- Creation baskets issued for ZEC deposits
- Secondary-market exposure to Zcash price movements

## Customers

The Trust's primary users are accredited investors and market participants seeking regulated, exchange-traded exposure to Zcash without directly holding the token. Secondary-market buyers include traders and allocators using OTCQX liquidity to gain or adjust ZEC exposure. Authorized Participants and other institutional counterparties interact with the Trust through creation activity, while the underlying ZEC market remains the main reference for valuation.

- **Accredited investors** (primary) — Buy Trust shares to gain indirect exposure to ZEC through a securities wrapper rather than direct token custody.
- **Secondary-market traders** (primary) — Trade ZCSH on OTCQX to express views on ZEC price movements and arbitrage premiums/discounts to NAV.
- **Authorized Participants** (secondary) — Create baskets by delivering ZEC to the Trust and, if redemptions are approved, would redeem in reverse.
- **Institutional allocators** (secondary) — Use the Trust as a convenient, custody-managed way to access Zcash within portfolio mandates.

- Accredited investors buying indirect ZEC exposure through Trust shares
- Secondary-market traders using OTCQX for price exposure and liquidity
- Authorized Participants creating baskets with ZEC deposits
- Institutional allocators seeking a custody-based Zcash wrapper
- Market participants comparing Trust shares to spot ZEC prices

## 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 ZEC trades on digital asset platforms worldwide, but the filing does not disclose country-level revenue because the Trust does not generate operating revenue in the usual sense.

- Delaware statutory trust formed in the United States
- Shares quoted on OTCQX in the U.S. market
- ZEC valuation depends on global digital asset trading venues
- No disclosed country revenue mix; trust is not an operating business

## Strategy

The Trust's strategy is to provide investors with cost-effective, convenient exposure to ZEC while tracking the token's value per share as closely as possible. It relies on periodic creation activity, secure custody, and market pricing discipline rather than active portfolio management, and it has no leverage or derivatives in pursuit of its objective.

- **Maintain close linkage between share price and ZEC value** (short-term) — The investment case depends on shares reflecting the Trust's ZEC holdings, net of expenses and liabilities.
- **Preserve custody and operational security** (short-term) — The Trust's assets are concentrated in a single digital asset, so secure storage is essential to avoid loss or delay.
- **Expand market acceptance of ZEC exposure** (medium-term) — Demand for the Trust depends on broader acceptance of Zcash and continued investor interest in privacy-focused digital assets.

- Track ZEC value per share through passive holding of the token
- Use creation baskets to align shares with underlying ZEC demand
- Maintain secure custody across multiple vaults to reduce single-point failure risk
- Support OTCQX liquidity and marketing through Grayscale Securities
- Avoid leverage and derivatives to keep the structure simple

## Risks

The Trust's value is highly dependent on ZEC price performance, liquidity, and market acceptance of privacy-focused digital assets. Because it is a passive vehicle with no operating diversification, adverse moves in ZEC, regulatory pressure on digital assets, or widening premiums/discounts to NAV can materially affect shareholder returns.

- **Extreme ZEC price volatility** [high] — The Trust's net asset value moves directly with the market price of ZEC, so sharp token declines flow through to share value.
- **Limited acceptance of ZEC as a payment medium** [high] — If ZEC is not widely used for retail or commercial transactions, demand may remain speculative and less durable.
- **Competition from other digital assets and privacy coins** [medium] — Alternative assets such as XMR, DASH, and ROSE can attract users and capital away from Zcash.
- **Premium/discount to NAV on OTCQX** [medium] — Shares can trade away from underlying ZEC value because of liquidity differences and non-concurrent trading hours.
- **Custody and blockchain operational risk** [medium] — Digital asset storage and blockchain transfer processes can be delayed or disrupted, affecting creations and access.

- ZEC price volatility can rapidly reduce the value of Trust shares
- Privacy-coin adoption may remain limited, weakening long-term demand
- Competition from other digital assets can divert capital and trading volume
- OTCQX shares may trade at persistent premiums or discounts to NAV
- Custody or blockchain operational issues could delay access to assets

## Accounting

The Trust accounts for ZEC at fair value and records changes in unrealized appreciation or depreciation through net investment results, so reported performance is dominated by market price movements rather than operating revenue. Because creations and any future redemptions are recorded on a trade-date basis and sponsor fees may be settled in ZEC, valuation timing and specific identification can materially affect reported gains and losses.

- **Fair value measurement of ZEC** — Large swings in unrealized appreciation/depreciation
- **Principal market determination** — Can change reported NAV and share valuation
- **Trade-date accounting for creations and expense settlements** — Quarterly comparability and realized gains/losses
- **Sponsor fee settlement in ZEC** — Impacts net assets and realized results

- Fair value accounting makes earnings highly sensitive to ZEC price changes
- Trade-date accounting affects when creations and expense settlements are recognized
- Specific identification is used for realized gains and losses
- Sponsor fees may be settled in ZEC, affecting realized results
- Principal market selection drives NAV and valuation inputs

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*Last updated: 2026-04-28T20:12:19.132604+00:00*