Global digital asset management leader Grayscale Investments has introduced the Grayscale Horizen Trust (HZEN), a regulated investment vehicle providing exposure to Horizen's native token ZEN without direct crypto ownership.
How the Grayscale Horizen Trust Works
The trust offers ZEN tokens in securities form, allowing accredited investors to bypass technical challenges like:
- Direct cryptocurrency purchases
- Secure storage solutions
- Private key management
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Investors gain exposure through traditional brokerage accounts by purchasing HZEN shares, priced at market value with daily NAV updates.
Key Trust Specifications
| Detail | Value |
|---|---|
| Ticker Symbol | HZEN |
| Management Fee | 2.50% annually |
| NAV per Share | $1.27 |
| Market Price | $6.40 |
| Outstanding Shares | 6.8 million |
| ZEN per Share | ≈0.085 |
| AUM (Dec 2024) | $8.7 million |
Understanding Horizen and ZEN
Horizen operates as a decentralized blockchain ecosystem where:
- ZEN facilitates peer-to-peer transactions
- Network validators maintain security via cryptographic protocols
- Public ledger ensures transparent record-keeping
The platform combines blockchain technology with developer tools for building privacy-focused applications.
Market Accessibility
HZEN shares trade via OTC Markets Group with:
- SEC-registered status under Securities Exchange Act of 1934
- Price tracking via Coin Metrics' Horizen Reference Rate
Real-time performance metrics including:
- Daily AUM updates
- Share price movements
- Market trend analysis
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Grayscale's Strategic Vision
This launch reflects Grayscale's commitment to bridging traditional finance and digital assets by:
- Providing institutional-grade crypto products
- Simplifying regulated access to blockchain assets
- Expanding investment options for accredited investors
The firm's crypto holdings reportedly surged 85% in November 2024, demonstrating growing institutional confidence.
FAQ: Grayscale Horizen Trust
Why choose this trust over direct ZEN purchase?
The trust eliminates technical barriers while offering:
- Brokerage account compatibility
- Regulatory oversight
- NAV-based pricing
Who can invest in HZEN?
Only accredited investors meeting SEC income/net worth requirements.
How does the trust handle ZEN storage?
Grayscale's custodial partners manage all underlying assets with institutional-grade security protocols.
What are the tax implications?
Investors should consult tax professionals regarding capital gains and trust distribution taxes.
Can shares be redeemed for ZEN?
Currently, the trust doesn't offer redemption - shares must be sold on secondary markets.
How often are fees charged?
The 2.5% management fee accrues daily and deducts quarterly from trust assets.