Grayscale Zcash Trust (ZEC) Files Q3 2024 10-Q

TL;DR

Grayscale Zcash Trust (ZEC) 10-Q filed. Holdings updated.

AI Summary

Grayscale Zcash Trust (ZEC) filed its 10-Q for the period ending September 30, 2024. The filing details the trust's investments and financial position. The trust is incorporated in Delaware and its fiscal year ends on December 31.

Why It Matters

This filing provides investors with an update on the Grayscale Zcash Trust's holdings and financial performance, crucial for understanding the value and risks associated with Zcash investments.

Risk Assessment

Risk Level: medium — The value of the trust is directly tied to the volatile cryptocurrency market, specifically Zcash.

Key Players & Entities

• Grayscale Zcash Trust (ZEC) (company) — Filer
• 2024-09-30 (date) — Reporting Period End Date
• 2024-11-01 (date) — Filing Date
• Delaware (location) — State of Incorporation
• Coinbase Inc (company) — Member

FAQ

Filing Documents

• zcsh-20240930.htm (10-Q) — 903KB
• zcsh-ex31_1.htm (EX-31.1) — 24KB
• zcsh-ex31_2.htm (EX-31.2) — 24KB
• zcsh-ex32_1.htm (EX-32.1) — 9KB
• zcsh-ex32_2.htm (EX-32.2) — 9KB
• img36271317_0.jpg (GRAPHIC) — 446KB
• img36271317_1.jpg (GRAPHIC) — 321KB
• img36271317_2.jpg (GRAPHIC) — 297KB
• 0000950170-24-120133.txt ( ) — 5464KB
• zcsh-20240930.xsd (EX-101.SCH) — 349KB
• zcsh-20240930_htm.xml (XML) — 460KB

Forward-Looking Statements

Forward-Looking Statements 3 Industry and Market Data 3

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 4 Schedules of Investment at September 30, 2024 and December 31, 2023 5 6 7 Notes to the Unaudited Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25 GLOSSARY OF DEFINED TERMS 26

SIGNATURES

SIGNATURES 30 2 Forw ard-Looking Statements This Quarterly Report on Form 10-Q contains "forward-looking statements" with respect to the financial conditions, results of operations, plans, objectives, future performance and business of Grayscale Zcash Trust (ZEC) (the "Trust"). Statements preceded by, followed by or that include words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Quarterly Report that address activities, events or developments that will or may occur in the future, including such matters as changes in market prices and conditions, the Trust's operations, the plans of Grayscale Investments, LLC (the "Sponsor") and references to the Trust's future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially from such statements. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor's expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to, those described in "Part I, Item 1A. Risk Factors" of our Annual Report on Form 10-K and in "Part II, Item 1A. Risk Factors" herein. Forward-looking statements are made based on the Sponsor's beliefs, estimates and opinions on the date the statements are made and neither the Trust nor the Sponsor is under a duty or undertakes an obligation to update forward-looking statements if these beliefs, estimates and opinions or

– FINANCI AL INFORMATION

PART I – FINANCI AL INFORMATION:

Financial St atements (Unaudited)

Item 1. Financial St atements (Unaudited) GRAYSCALE ZCASH TRUST (ZEC) ( Amounts in thousands, except Share and per Share amounts) September 30, 2024 December 31, 2023 Assets: Investment in ZEC, at fair value (cost $ 48,289 and $ 47,555 as of September 30, 2024 and December 31, 2023, respectively) $ 10,769 $ 8,961 Total assets $ 10,769 $ 8,961 Liabilities: Sponsor's Fee payable, related party $ - $ - Total liabilities - - Net assets $ 10,769 $ 8,961 Shares issued and outstanding, no par value ( unlimited Shares authorized) 4,568,000 3,777,700 Principal market net asset value per Share $ 2.36 $ 2.37 See accompanying notes to the unaudited financial statements. 4 GRAYSCALE ZCASH TRUST (ZEC) SCHEDULES OF INVESTMENT (UNAUDITED) ( Amounts in thousands, except quantity of ZEC and percentages) September 30, 2024 Quantity of ZEC Cost Fair Value % of Net Assets Investment in ZEC 384,059.30599554 $ 48,289 $ 10,769 100 % Net assets $ 48,289 $ 10,769 100 % December 31, 2023 Quantity of ZEC Cost Fair Value % of Net Assets Investment in ZEC 323,614.61762737 $ 47,555 $ 8,961 100 % Net assets $ 47,555 $ 8,961 100 % See accompanying notes to the unaudited financial statements. 5 GRAYSCALE ZCASH TRUST (ZEC) ( Amounts in thousands) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Investment income: Investment income $ - $ - $ - $ - Expenses: Sponsor's Fee, related party 75 58 180 212 Net investment loss ( 75 ) ( 58 ) ( 180 ) ( 212 ) Net realized and unrealized gain (loss) from: Net realized loss on investment in ZEC ( 228 ) ( 244 ) ( 717 ) ( 691 ) Net change in unrealized depreciation on investment in ZEC 3,

View Full Filing

View this 10-Q filing on SEC EDGAR