Grayscale Zcash Trust ZEC
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
ZCSH$35.59+7.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-03.
0000950170-24-053048
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0000950170-24-089617
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 44 previous paragraphs and 46 current paragraphs.
36 unchanged; 7 reworded; 3 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Net realized and unrealized loss on investment in ZEC for the three months ended June 30, 2023 was ($1,939), which includes a realized loss of ($233) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized depreciation on investment in ZEC of ($1,706). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $39.15 per ZEC as of March 31, 2023, to $33.27 per ZEC as of June 30, 2023. Net decrease in net assets resulting from operations was ($2,007) for the three months ended June 30, 2023, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $68. Net assets decreased to $10,903 at June 30, 2023, a 16% decrease for the three-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 2,049 ZEC to pay the foregoing Sponsor’s Fee.
Current report
Net realized and unrealized loss on investment in ZEC for the six months ended June 30, 2024 was ($2,497), which includes a realized loss of ($489) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized depreciation on investment in ZEC of ($2,008). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $27.69 per ZEC as of December 31, 2023, to $20.53 per ZEC as of June 30, 2024. Net decrease in net assets resulting from operations was ($2,602) for the six months ended June 30, 2024, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $105. Net assets decreased to $7,840 at June 30, 2024, a 13% decrease for the six-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 4,235 ZEC to pay the foregoing Sponsor’s Fee, partially offset by the contribution of approximately 62,498 ZEC with a value of $1,481 to the Trust in connection with Share creations during the period.
Current report
Net realized and unrealized loss on investment in ZEC for the six months ended June 30, 2023 was ($1,486), which includes a realized loss of ($447) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized depreciation on investment in ZEC of ($1,039). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $37.80 per ZEC as of December 31, 2022, to $33.27 per ZEC as of June 30, 2023. Net decrease in net assets resulting from operations was ($1,640) for the six months ended June 30, 2023, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $154. Net assets decreased to $10,903 at June 30, 2023, a 13% decrease for the six-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 4,088 ZEC to pay the foregoing Sponsor’s Fee.
Removed paragraphs (1)
Previous report
Net realized and unrealized gain on investment in ZEC for the three months ended March 31, 2023 was $453, which includes a realized loss of ($214) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in ZEC of $667. Net realized and unrealized gain on investment in ZEC for the period was driven by ZEC price appreciation from $37.80 per ZEC as of December 31, 2022, to $39.15 per ZEC as of March 31, 2023. Net increase in net assets resulting from operations was $367 for the three months ended March 31, 2023, which consisted of the net realized and unrealized gain on investment in ZEC, less the Sponsor’s Fee of $86. Net assets increased to $12,910 at March 31, 2023, a 3% increase for the three-month period. The increase in net assets resulted from the aforementioned ZEC price appreciation, partially offset by the withdrawal of approximately 2,039 ZEC to pay the foregoing Sponsor’s Fee.
Reworded paragraphs (7)
Previous wording
Financial Highlights for the Three Months Ended March 31, 2024 and 2023
Current wording
Financial Highlights for the Three and Six Months Ended June 30, 2024 and 2023
Previous wording
Net realized and unrealized gain on investment in ZEC for the three months ended March 31, 2024 was $899, which includes a realized loss of ($243) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized appreciation on investment in ZEC of $1,142. Net realized and unrealized gain on investment in ZEC for the period was driven by ZEC price appreciation from $27.69 per ZEC as of December 31, 2023, to $30.51 per ZEC as of March 31, 2024. Net increase in net assets resulting from operations was $847 for the three months ended March 31, 2024, which consisted of the net realized and unrealized gain on investment in ZEC, less the Sponsor’s Fee of $52. Net assets increased to $9,971 at March 31, 2024, an 11% increase for the three-month period. The increase in net assets resulted from the aforementioned ZEC price appreciation and the contribution of approximately 5,200 ZEC with a value of $163 to the Trust in connection with Share creations during the period, partially offset by the withdrawal of approximately 2,013 ZEC to pay the foregoing Sponsor’s Fee.
Current wording
Net realized and unrealized loss on investment in ZEC for the three months ended June 30, 2024 was ($3,396), which includes a realized loss of ($246) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized depreciation on investment in ZEC of ($3,150). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $30.51 per ZEC as of March 31, 2024, to $20.53 per ZEC as of June 30, 2024. Net decrease in net assets resulting from operations was ($3,449) for the three months ended June 30, 2024, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $53. Net assets decreased to $7,840 at June 30, 2024, a 21% decrease for the three-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 2,222 ZEC to pay the foregoing Sponsor’s Fee, partially offset by the contribution of approximately 57,298 ZEC with a value of $1,318 to the Trust in connection with Share creations during the period.
Previous wording
The Trust’s NAV per Share is derived from the Index Price as represented by the Index as of 4:00 p.m., New York time, on the valuation date. The Trust’s NAV per Share is calculated using a non-GAAP methodology where the price is derived from multiple Digital Asset Trading Platforms. Prior to February 23, 2024, NAV was referred to as Digital Asset Holdings and NAV per Share was referred to as Digital Asset Holdings per Share. See “Item 1. Business—Overview of the ZEC Industry and Market—ZEC Value—The Index and the Index Price” in the Trust’s Annual Report on Form 10-K for a description of the Index and the Index Price. The Digital Asset Trading Platforms included in the Index as of March 31, 2024 were Coinbase, Kraken and Gemini. The Digital Asset Trading Platforms included in the Index as of March 31, 2023 were Coinbase, Binance.US, Kraken and Gemini. See “Item 1. Business—Valuation of ZEC and Determination of NAV” in the Trust’s Annual Report on Form 10-K for a description of the Trust’s NAV per Share.
Current wording
The Trust’s NAV per Share is derived from the Index Price as represented by the Index as of 4:00 p.m., New York time, on the valuation date. The Trust’s NAV per Share is calculated using a non-GAAP methodology where the price is derived from multiple Digital Asset Trading Platforms. Prior to February 23, 2024, NAV was referred to as Digital Asset Holdings and NAV per Share was referred to as Digital Asset Holdings per Share. See “Item 1. Business—Overview of the ZEC Industry and Market—ZEC Value—The Index and the Index Price” in the Trust’s Annual Report on Form 10-K for a description of the Index and the Index Price. The Digital Asset Trading Platforms included in the Index as of June 30, 2024 were Coinbase, Kraken and Gemini. On July 28, 2024, the Index Provider removed Gemini from the Index due to the trading platform not meeting the Index Provider’s minimum liquidity requirement, and added Bitfinex as a Constituent Trading Platform, as part of its scheduled quarterly review. The Digital Asset Trading Platforms included in the Index as of June 30, 2023 were Coinbase, Kraken and Gemini.See “Item 1. Business—Valuation of ZEC and Determination of NAV” in the Trust’s Annual Report on Form 10-K for a description of the Trust’s NAV per Share.
Previous wording
As of March 31, 2024, the Trust had a net closing balance with a value of $9,974,009, based on the Index Price (non-GAAP methodology). As of March 31, 2024, the Trust had a total market value of $9,970,741, based on the Digital Asset Market price of ZEC on the Trust’s principal market (Coinbase).
Current wording
As of June 30, 2024, the Trust had a net closing balance with a value of $7,839,953, based on the Index Price (non-GAAP methodology). As of June 30, 2024, the Trust had a total market value of $7,839,953, based on the Digital Asset Market price of ZEC on the Trust’s principal market (Coinbase).
Previous wording
As of March 31, 2023, the Trust had a net closing balance with a value of $12,900,527, based on the Index Price (non-GAAP methodology). As of March 31, 2023, the Trust had a total market value of $12,910,421, based on the Digital Asset Market price of ZEC on the Trust’s principal market (Coinbase).
Current wording
As of June 30, 2023, the Trust had a net closing balance with a value of $10,886,825, based on the Index Price (non-GAAP methodology). As of June 30, 2023, the Trust had a total market value of $10,903,211, based on the Digital Asset Market price of ZEC on the Trust’s principal market (Coinbase).
Previous wording
The following table illustrates the movements in the Index Price from April 1, 2019 to March 31, 2024. During such period, the Index Price has ranged from $18.98 to $365.90, with the straight average being $75.58 through March 31, 2024. The Sponsor has not observed a material difference between the Index Price and average prices from the constituent Digital Asset Trading Platforms individually or as a group.
Current wording
The following table illustrates the movements in the Index Price from July 1, 2019 to June 30, 2024. During such period, the Index Price has ranged from $18.98 to $365.90, with the straight average being $72.90 through June 30, 2024. The Sponsor has not observed a material difference between the Index Price and average prices from the constituent Digital Asset Trading Platforms individually or as a group.
Previous wording
The following table illustrates the movements in the Digital Asset Market price of ZEC, as reported on the Trust’s principal market, from April 1, 2019 to March 31, 2024. During such period, the price of ZEC has ranged from $19.00 to $365.90, with the straight average being $75.61 through March 31, 2024.
Current wording
The following table illustrates the movements in the Digital Asset Market price of ZEC, as reported on the Trust’s principal market, from July 1, 2019 to June 30, 2024. During such period, the price of ZEC has ranged from $19.00 to $365.90, with the straight average being $72.92 through June 30, 2024.