Grayscale Investments LLC Grayscale Horizen Trust (ZEN) has submitted its 10-K filing for the fiscal year ended September 30, 2024.
The filing details the Trust's operations, which are limited to issuing shares in exchange for Horizen (ZEN), a digital asset, and managing the Trust's assets. The Trust's objective is for the value of its shares to reflect the value of ZEN held by the Trust, less expenses.
ZEN's market value is volatile, influenced by factors like market demand, regulatory changes, and technological developments. The Trust's shares have historically traded at a premium or discount to their net asset value (NAV).
The Trust does not currently offer a redemption program for its shares, and there are restrictions on transfer and resale of shares purchased in the private placement, subject to Rule 144 under the Securities Act.
The Trust's financial statements reflect the fair value of ZEN, and the Trust uses a reference rate to calculate its NAV. The Trust's expenses are primarily the Sponsor's Fee, which is paid in ZEN.
Recent regulatory scrutiny of digital assets, including actions by the SEC, may impact the Trust's operations and the value of ZEN. The Trust is not registered under the Investment Company Act and does not hold or trade in commodity interests.
The Trust's operations rely on third-party service providers, including a custodian for ZEN, and any disruption in these services could affect the Trust's ability to operate.
The filing outlines risks related to digital assets, including market volatility, regulatory changes, and technological challenges. It also discusses potential conflicts of interest involving the Sponsor and its affiliates.
The Trust may face extraordinary expenses in certain circumstances, which could impact the value of the shares. The Trust's assets could be subject to theft or loss due to security breaches.
The Trust's dissolution could be triggered by various events, including regulatory actions or changes in the status of ZEN under federal securities laws. The Sponsor has discretion to dissolve the Trust if it deems it advisable.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Grayscale Investments LLC Grayscale Horizen Trust (ZEN) annual 10-K report dated November 22, 2024. To report an error, please email earnings@qz.com.