Grayscale Zcash Trust issues new shares in private placement

Published 21/03/2025, 21:46
Grayscale Zcash Trust issues new shares in private placement

Grayscale Zcash Trust (ZEC), a digital currency investment product with a market capitalization of $13.8 million, has reported the private issuance of 74,200 shares, according to a recent SEC filing. The Trust’s shares are currently trading at $2.90, having gained nearly 10% over the past week despite a challenging year-to-date performance of -49%. The shares were sold to "accredited investors" at varying prices based on the Trust’s net asset value (NAV) per share. The transactions, which took place on Monday, were exempt from registration under the Securities Act of 1933, as amended, pursuant to Rule 506(c).

The newly issued shares represent an aggregate of 6,185.49790143 ZEC, the digital currency the Trust is based upon, with a total value of approximately $293,065. Grayscale Securities, LLC, served as the Authorized Participant for the distributions, which now brings the total number of issued and outstanding shares of the Trust to 4,759,200 as of today. According to InvestingPro data, the Trust has experienced significant price volatility, with the share price ranging from a 52-week high of $10.23 to a low of $2.33.

The Trust’s ongoing issuance of shares suggests that there may be a continuous "distribution" as defined by the Securities Act. Consequently, Grayscale Securities may be considered an "underwriter" under the Act. However, it is noted that no underwriting discounts or commissions were paid in connection with these transactions.

This issuance is part of Grayscale’s broader offerings that allow investors to gain exposure to digital currencies without directly buying, storing, and safekeeping digital currencies. The Grayscale Zcash Trust is structured to hold ZEC, the native cryptocurrency of the Zcash network, which is known for its privacy-enhancing features. For investors seeking deeper insights into the Trust’s performance and metrics, InvestingPro offers exclusive access to over 10 additional key indicators and analysis tools.

The information for this report is based on a press release statement filed with the SEC.

In other recent news, Grayscale Investments has launched the Grayscale Pyth Trust, an investment vehicle designed to offer accredited investors exposure to the PYTH token. This new trust aligns with Grayscale’s strategy to expand its product offerings in the digital asset space, similar to their well-known Bitcoin and Ethereum Trusts. Meanwhile, the cryptocurrency ETF market has seen significant outflows, with Grayscale’s Bitcoin Trust (GBTC) experiencing a $46.26 million withdrawal. In contrast, Blackrock (NYSE:BLK)’s IBIT ETF attracted $55.36 million in inflows, indicating varying investor sentiment across different funds.

Additionally, Grayscale’s Zcash Trust has undergone a corporate restructure, merging with Grayscale Operating, LLC, a subsidiary of Digital Currency Group, Inc. This reorganization is not expected to materially impact the Trust’s operations but involves a shift in sponsorship to Grayscale Investments Sponsors, LLC. Furthermore, Grayscale Zcash Trust has expanded its market data sources by adding Gemini as a constituent to the CoinDesk Zcash Price Index. This inclusion follows Gemini’s fulfillment of liquidity requirements, enhancing the Trust’s pricing accuracy.

These developments highlight Grayscale’s continued efforts to diversify its offerings and adapt to the dynamic cryptocurrency market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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