Fair Value of ZEN

6 Months Ended

Mar. 31, 2024

3. Fair Value of ZEN

ZEN is held by the Custodian on behalf of the Trust and is carried at fair value. As of March 31, 2024 and September 30, 2023, the Trust held 593,660.61627208 and 601,138.55454194 ZEN, respectively.

The Trust determined the fair value per ZEN to be $14.83 and $7.77 on March 31, 2024 and September 30, 2023, respectively, using the price provided at 4:00 p.m., New York time, by the Digital Asset Trading Platform Market considered to be the Trust’s principal market (Coinbase).

The following represents the changes in quantity of ZEN and the respective fair value:


(Amounts in thousands, except ZEN amounts)	Quantity			Fair Value
Balance at September 30, 2022		616,356.97722875		$	8,691
ZEN contributed		-			-
ZEN distributed for Sponsor’s Fee, related party		(15,218.42268681	)		(147	)
Net change in unrealized depreciation on investment in ZEN		-			(3,709	)
Net realized loss on investment in ZEN		-			(164	)
Balance at September 30, 2023		601,138.55454194		$	4,671
ZEN contributed		-			-
ZEN distributed for Sponsor’s Fee, related party		(7,477.93826986	)		(75	)
Net change in unrealized appreciation on investment in ZEN		-			4,286
Net realized loss on investment in ZEN		-			(78	)
Balance at March 31, 2024		593,660.61627208		$	8,804

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details