Fri, May 2, 8:15 PM (9 days ago)
**Grayscale Zcash Trust (ZEC) Q1 2025 Financial Summary** **Ticker:** ZCSH **Q1 2025 Financial Health:** - **Revenue:** $0 (no investment income) - **Expenses:** $96,512 (Sponsor’s Fee) - **Net Investment Loss:** $7,182, driven by a $6,884 unrealized depreciation on ZEC and a $202 realized loss. - **Net Assets:** Decreased by 32% to $15,049, due to ZEC price depreciation and Sponsor’s Fee withdrawal. - **Shares Outstanding:** Increased by 58,700 to 4,759,200. **Q1 2024 Comparison:** - **Net Investment Gain:** $847, driven by a $1,142 unrealized appreciation on ZEC and a $243 realized loss. - **Net Assets:** Increased by 11% to $9,971, due to ZEC price appreciation and Share creations. **Trends & Uncertainties:** - ZEC price volatility and market risks pose significant uncertainties. - Regulatory developments, such as the SEC's crypto task force, may impact ZEC's status and the Trust's operations. - The Trust's investment objective has not been met, with Shares trading at premiums and discounts to the underlying ZEC value. **Future Operations Impact:** - The Trust's passive investment strategy and lack of redemption program may limit liquidity and affect Share pricing. - The Sponsor's fee structure and expense coverage may impact net asset growth. - Regulatory and market developments may necessitate operational changes or strategic shifts. **Key Metrics:** - **Principal Market NAV per Share:** Decreased from $4.69 to $3.16. - **Total Return:** -32.62% for Q1 2025, compared to 9.70% for Q1 2024. - **Ratios to Average Net Assets:** Net investment loss and expenses both at -2.50%. **Legal & Risk Factors:** - Ongoing legal proceedings related to Grayscale Bitcoin Trust may have indirect implications. - The Trust faces various risks, including market, liquidity, and regulatory risks. **Conclusion:** Grayscale Zcash Trust (ZEC) faced significant headwinds in Q1 2025, with net asset depletion driven by ZEC price depreciation and Sponsor’s Fees. The Trust's passive investment strategy and regulatory uncertainties pose challenges for future operations. Investors should monitor market trends, regulatory developments, and the Trust's strategic responses to navigate potential impacts on their investments.