Grayscale Zcash Trust (ZEC)

Previous wording

The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees. The Trust holds ZEC and, from time to time on a periodic basis, issues Creation Baskets in exchange for deposits of ZEC. As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on ZEC per Share) to reflect the value of the ZEC held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities. While an investment in the Shares is not a direct investment in ZEC, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ZEC. To date, the Trust has not met its investment objective and the Shares quoted on OTCQX have not reflected the value of the ZEC held by the Trust, less the Trust’s expenses and other liabilities, but instead have traded at both premiums and discounts to such value, which at times have been substantial. The Trust is not managed like a business corporation or an active investment vehicle. The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.

Current wording

The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees. The Trust holds ZEC and, from time to time on a periodic basis, issues Creation Baskets in exchange for deposits of ZEC. As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on ZEC per Share) to reflect the value of the ZEC held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities. While an investment in the Shares is not a direct investment in ZEC, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ZEC. To date, the Trust has not met its investment objective and the Shares quoted on OTC Markets have not reflected the value of the ZEC held by the Trust, less the Trust’s expenses and other liabilities, but instead have traded at both premiums and discounts to such value, which at times have been substantial. The Trust is not managed like a business corporation or an active investment vehicle. The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.

Previous wording

Financial Highlights for the Three Months Ended March 31, 2026 and 2025

Current wording

Financial Highlights for the Three and Six Months Ended June 30, 2026 and 2025

Previous wording

Net realized and unrealized loss on investment in ZEC for the three months ended March 31, 2026 was ($100,275), which includes a realized gain of $425 on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in ZEC of ($100,700). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $509.35 per ZEC as of December 31, 2025, to $254.27 per ZEC as of March 31, 2026. Net decrease in net assets resulting from operations was ($100,995) for the three months ended March 31, 2026, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $720. Net assets decreased to $99,446 at March 31, 2026, a 50% decrease for the three-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 2,418 ZEC to pay the foregoing Sponsor’s Fee.

Current wording

Net realized and unrealized loss on investment in ZEC for the six months ended June 30, 2026 was ($43,406), which includes a realized gain of $1,192 on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in ZEC of ($44,598). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $509.35 per ZEC as of December 31, 2025, to $399.44 per ZEC as of June 30, 2026. Net decrease in net assets resulting from operations was ($45,189) for the six months ended June 30, 2026, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $1,783. Net assets decreased to $155,252 at June 30, 2026, a 23% decrease for the six-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 4,849 ZEC to pay the foregoing Sponsor’s Fee.

Previous wording

Net realized and unrealized loss on investment in ZEC for the three months ended March 31, 2025 was ($7,086), which includes a realized loss of ($202) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in ZEC of ($6,884). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $56.12 per ZEC as of December 31, 2024, to $38.08 per ZEC as of March 31, 2025. Net decrease in net assets resulting from operations was ($7,182) for the three months ended March 31, 2025, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $96. Net assets decreased to $15,049 at March 31, 2025, a 32% decrease for the three-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately

Current wording

Net realized and unrealized loss on investment in ZEC for the six months ended June 30, 2025 was ($6,710), which includes a realized loss of ($402) on the transfer of ZEC to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in ZEC of ($6,308). Net realized and unrealized loss on investment in ZEC for the period was driven by ZEC price depreciation from $56.12 per ZEC as of December 31, 2024, to $39.02 per ZEC as of June 30, 2025. Net decrease in net assets resulting from operations was ($6,907) for the six months ended June 30, 2025, which consisted of the net realized and unrealized loss on investment in ZEC, plus the Sponsor’s Fee of $197. Net assets decreased to $15,324 at June 30, 2025, a 30% decrease for the six-month period. The decrease in net assets resulted from the aforementioned ZEC price depreciation and the withdrawal of approximately 4,883 ZEC to pay the foregoing Sponsor’s Fee, partially offset by the contribution of approximately 4,888 ZEC with a value of $191 to the Trust in connection with Share creations during the period.

Previous wording

The Trust’s NAV and NAV per Share are 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. The Digital Asset Trading Platforms included in the Index (the “Constituent Trading Platforms”) as of March 31, 2026 were Coinbase, Kraken, and Gemini. The Digital Asset Trading Platforms included in the Index as of March 31, 2025 were Coinbase, Kraken, Gemini, and Bitfinex. The Digital Asset Trading Platforms included in the Index as of May 4, 2026 were Binance, Gemini, Kraken and OKX. See “Item 1. Business—Overview of the ZEC Industry and Market—ZEC Value—The Index and the Index Price” in our Annual Report for a description of the Index and the Index Price.

Current wording

The Trust’s NAV and NAV per Share are 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. The Digital Asset Trading Platforms included in the Index (the “Constituent Trading Platforms”) as of June 30, 2026 were Binance, Gemini, Kraken and OKX. The Digital Asset Trading Platforms included in the Index as of June 30, 2025 were Coinbase, Kraken, Gemini, and Bitfinex. The Digital Asset Trading Platforms included in the Index as of July 30, 2026 were Binance, Bitstamp by Robinhood, Gemini, Kraken and OKX. See “Item 1. Business—Overview of the ZEC Industry and Market—ZEC Value—The Index and the Index Price” in our Annual Report for a description of the Index and the Index Price.

Previous wording

The following chart sets out the historical closing prices for the Shares as reported by OTCQX and the Trust’s NAV per Share from October 18, 2021 to March 31, 2026.

Current wording

The following chart sets out the historical closing prices for the Shares as reported by OTC Markets and the Trust’s NAV per Share from October 18, 2021 to June 30, 2026.

Previous wording

The following chart sets out the historical premium and discount for the Shares calculated as a percentage of the historical closing prices for the Shares as reported by OTCQX divided by the Trust’s NAV per Share from October 18, 2021 to March 31, 2026.

Current wording

The following chart sets out the historical premium and discount for the Shares calculated as a percentage of the historical closing prices for the Shares as reported by OTC Markets divided by the Trust’s NAV per Share from October 18, 2021 to June 30, 2026.