Grayscale Horizen Trust

What they do

The Trust's sole purpose is to hold ZEN and, on a periodic basis, issue Creation Baskets to accredited investors in exchange for deposits of ZEN. It is managed by Grayscale Investments Sponsors, LLC as Sponsor and has no officers, directors, or employees. It does not use leverage, derivatives, or similar arrangements and is not currently accepting redemption requests. Shares are quoted on the OTCQX Best Market under the ticker HZEN.

Revenue drivers

• ZEN token holdings — The Trust's value derives from the ZEN it holds, approximately 5.5% of ZEN in circulation as of September 30, 2025; changes in ZEN fair value flow through as unrealized appreciation or depreciation rather than operating revenue.
• Share creations for ZEN deposits — The Trust issues Shares in Creation Baskets to accredited investors in exchange for ZEN deposits, which increases assets under management and the Sponsor's fee base; it records these on a trade date basis.
• Sponsor's Fee paid in ZEN — The Sponsor is paid a fee, settled in ZEN, which reduces Trust holdings; realized gains and losses are recognized when the Trust delivers ZEN to settle this obligation.

Recent performance

Annual net income swung from $36.0M in 2021 to a $35.2M loss in 2022, narrowed to a $4.0M loss in 2023, turned to $96,000 of income in 2024, and returned to a $3.9M loss in 2025. The most recent balance sheet showed total assets of $3.8M and total liabilities of $0.00 as of June 30, 2026. The Trust has stated it has not met its investment objective, with Shares trading at both premiums and discounts to the value of ZEN held, at times substantial.

Strategy

The Trust is a passive vehicle whose stated objective is for the value of the Shares, based on ZEN per Share, to reflect the value of ZEN held by the Trust less expenses and other liabilities. It is not managed like a business corporation or active investment vehicle and will not use leverage, derivatives, or similar arrangements. It issues Creation Baskets to accredited investors on a periodic basis and is not currently accepting redemption requests. The Sponsor changed from Grayscale Investments, LLC to the current sole Sponsor, GSIS, effective May 3, 2025.

Risks

• Premium/discount to NAV — The Trust has stated that its Shares have traded at both premiums and discounts to the value of ZEN held, which at times have been substantial, so share prices may not track ZEN value.
• No redemption mechanism — The Trust is not accepting redemption requests from shareholders, which limits the ability of Shares to converge to net asset value.
• Horizen protocol change — The Horizen Network migrated ZEN from its legacy standalone blockchain to the Base Network in July 2025 and deprecated privacy features in September 2023, which could affect ZEN's utility, demand, or value.
• Passive, single-asset concentration — The Trust holds only ZEN with no diversification, and as a passive entity it cannot influence the Horizen Network's development or governance.

Outlook

Management describes the Trust as a passive vehicle intended to provide cost-effective and convenient exposure to ZEN, with its value based on ZEN per Share as determined by the Reference Rate Price less expenses and other liabilities. The Trust acknowledges it has not met its investment objective given historical premium and discount trading. It continues to issue Shares periodically to accredited investors and does not accept redemption requests.