Grayscale Investments, a wholly-owned subsidiary of Digital Currency Group and the sponsor of the Bitcoin Investment Trust and the Ethereum Classic Investment Trust, has launched its third investment vehicle, the Zcash Investment Trust.
Launched in 2016, the Zcash Network aims to establish a new standard for financial privacy in an open and programmable distributed ledger system. The investment objective of the newly launched trust is for the shares to reflect the value of the ZEC held by the trust, determined by reference to the TradeBlock ZEC Composite Reference Rate at 4:00 p.m. New York time, less the Trust's expenses and other liabilities.
“The Zcash Investment Trust’s shares are the first securities solely invested in and deriving value from the price of ZEC,” according to the website. “The Zcash Investment Trust enables investors to gain exposure to the price movement of ZEC through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping ZEC.”
According to the official release, the Zcash Investment Trust is a passive investment vehicle. As it does not currently operate a redemption program, Grayscale Investments said that there can be no assurance that the value of the shares will approximate the value of the ZEC held by the trust and the shares may trade at a substantial premium over the value of the trust's ZEC if quoted on any secondary market in the future.
To that end, it said that even if the trust seeks regulatory approval to operate a redemption program, no assurance can be given as to the timing of such approval or that such approval will be granted.
