Grayscale Zcash Trust (ZEC) Announces Private Sale of 55,700 Shares to Accredited Investors

Grayscale Zcash Trust (ZEC), a cryptocurrency investment vehicle, has announced the private sale of 55,700 shares to accredited investors

Grayscale Zcash Trust (OTCMKTS:ZCSH) , a cryptocurrency funding automobile, introduced the personal placement of 55,700 shares to accredited traders, as said in its newest 8-K submitting with the Securities and Exchange Commission. The shares, tied to the Zcash virtual foreign money, have been offered at costs primarily based on the Trust’s Net Asset Value (NAV) per Share, accumulating an combination of four,677.02178339 ZEC, equal to roughly $175,460.

The transactions, which passed off on October 22, 2024, have been facilitated by Grayscale Securities, LLC, appearing because the Authorized Participant. Following the distribution, the Trust’s whole issued and excellent shares quantity to four,623,700 as of at the moment.

Grayscale Zcash Trust operates as a personal placement funding automobile and provides publicity to the Zcash cryptocurrency with out the direct buy of digital cash. The Trust’s shares are provided to accredited traders by means of exemptions from registration necessities beneath Rule 506(c) of Regulation D of the Securities Act of 1933.

The submitting additionally notes that the steady issuance of shares could also be thought-about a “distribution” beneath the Securities Act, doubtlessly categorizing Grayscale Securities as an “underwriter.” However, no underwriting reductions or commissions have been paid in relation to those gross sales.

The Trust, which is sponsored by Grayscale Investments, LLC, features beneath Delaware jurisdiction and is categorized beneath the Industrial Classification Code 6221, pertaining to Commodity Contracts Dealing.

Grayscale Zcash Trust’s providing permits traders to achieve publicity to Zcash, a privacy-focused cryptocurrency, whereas avoiding the complexities and safety considerations of direct cryptocurrency possession and administration. The Trust’s efficiency is straight tied to the worth of the underlying Zcash held by the Trust, which is topic to the fluctuations of the cryptocurrency markets.

In different current information, Grayscale Zcash Trust has been actively making adjustments to its operations. The digital foreign money funding product has issued a complete of 167,900 new shares to accredited traders in two separate transactions, elevating an combination of roughly 14,186.21513072 ZEC, equal to round $349,798. The gross sales have been a part of an ongoing issuance and have been exempt from registration beneath the Securities Act of 1933.

The Trust additionally introduced adjustments to the composition of its CoinDesk Zcash Price Index. CoinDesk Indices, Inc., the Trust’s Index Provider, added Bitfinex to the Index as a consequence of its passable liquidity ranges, whereas Gemini was eliminated for not assembly the required liquidity requirements. The Index now consists of buying and selling platforms Coinbase (NASDAQ:COIN), Kraken, and Bitfinex.

These developments come after Grayscale Securities, LLC, the Authorized Participant, distributed the shares primarily based on the Trust’s Net Asset Value (NAV) per share. After these transactions, the Trust’s whole issued and excellent shares now quantity to four,513,600.

As a end result of those actions, Grayscale Securities could also be considered an “underwriter” in keeping with Section 2(a)(11) of the Securities Act. The Trust, managed by Grayscale Investments, LLC, has not paid any underwriting reductions or commissions in relation to those transactions.