Recent news primarily covers Grayscale's broader crypto product launches and rebalancing activities, with no direct recent news specific to Grayscale Horizen Trust (ZEN).

• Grayscale launched the Sui Staking ETF (Ticker: GSUI) on NYSE Arca with staking features in February 2026 [N4].
• Grayscale announced rebalancing of multi-asset funds for the fourth quarter of 2025 [N5].
• Grayscale Ethereum Staking ETF (Ticker: ETHE) became the first U.S. Ethereum ETP to distribute staking rewards in January 2026 [N6].
• Grayscale Chainlink Trust ETF (Ticker: GLNK) launched on NYSE Arca as a new spot ETP in December 2025 [N7].
• Grayscale launched the XRP Trust ETF (Ticker: GXRP) on NYSE Arca in November 2025 [N8].
• Other recent news includes various unrelated company profit advances and oversold conditions in other stocks [N1,N2,N3].

The Trust provides a cost-effective and convenient vehicle for investors to gain exposure to the digital asset ZEN without directly holding it. Its passive structure minimizes operational complexity and leverages the Sponsor's expertise in digital asset management. The use of a Reference Rate Price derived from multiple trading platforms aims to provide a fair valuation of ZEN holdings. The Sponsor assumes most ordinary expenses, limiting the Trust's cost burden. The Trust's Shares are publicly traded, offering liquidity to investors. The Sponsor's ongoing efforts to comply with regulatory requirements and maintain the Trust's status may support continued operations. Recent launches and rebalancing of related Grayscale crypto products indicate active management of the broader product suite, which may benefit the Trust indirectly. [S1,S2,N4,N5,N6,N7,N8]

The Trust's value is highly sensitive to the volatile price of ZEN, which has experienced significant depreciation, leading to substantial net asset declines. The Trust does not generate income and must pay expenses by selling ZEN, which reduces assets and can trigger taxable events for shareholders without distributions. The lack of redemption options limits investor flexibility and may contribute to Shares trading at significant premiums or discounts to NAV. Regulatory uncertainty about whether ZEN or transactions in ZEN constitute securities under U.S. law poses a material risk that could lead to enforcement actions, operational disruption, or forced liquidation. The affiliation between the Sponsor and Authorized Participant may create conflicts of interest and non-arm's-length transactions, potentially disadvantaging shareholders. Extraordinary expenses or legal claims could force asset sales at depressed prices, further reducing Share value. [S1,S2,S6]

The Trust's moat is limited as it is a passive investment vehicle holding a single digital asset, ZEN, without active management or income generation. Its value is directly tied to the market price of ZEN, which is subject to significant volatility and regulatory uncertainty. The affiliation between the Sponsor and Authorized Participant may create conflicts of interest but also centralizes control over creation and distribution. The Trust's structure as a grantor trust and its non-registered status under the Investment Company Act limit operational flexibility. The Trust's ability to provide convenient exposure to ZEN through Shares traded on OTC Markets offers some accessibility advantage, but the lack of redemption options and the potential for substantial premiums or discounts to NAV reduce investor confidence and liquidity. [S1,S2,S6]

• Regulatory Uncertainty: There is significant uncertainty regarding whether ZEN or transactions in ZEN are securities under U.S. federal securities laws. A contrary determination by the SEC or courts could materially and adversely affect the Trust's operations, liquidity, and Share value [S1].
• Market Price Volatility: The Trust's net assets and Share value are directly affected by the volatile market price of ZEN, which has experienced substantial declines, impacting investor returns and Trust NAV [S2].
• Expense Payment Mechanism: The Trust pays expenses by selling or delivering ZEN, which reduces the Trust's assets and can create taxable events for shareholders without associated distributions, potentially adversely affecting investment value [S1,S2].
• Affiliated Transactions and Conflicts of Interest: The Sponsor and sole Authorized Participant are affiliated entities, resulting in non-arm's-length transactions and potential conflicts of interest that may not align with shareholder interests [S1,S6].
• Lack of Redemption Program: The Trust currently does not accept redemption requests and has no intention to seek regulatory approval for an ongoing redemption program, limiting investor liquidity and flexibility [S2].
• Extraordinary Expenses and Legal Risks: Extraordinary expenses, including legal fees or indemnification obligations, may require the Trust to sell assets at depressed prices, negatively impacting Share value [S1].

• Grayscale Horizen Trust (ZEN) is a passive investment vehicle managed and administered by a Sponsor without officers, directors, or employees [S2].
• The Trust holds the digital asset ZEN and issues Creation Baskets in exchange for deposits of ZEN; it does not accept redemption requests currently [S2].
• The investment objective is for the value of the Shares to reflect the value of ZEN held by the Trust, less expenses and liabilities, based on a Reference Rate Price derived from multiple Digital Asset Trading Platforms [S2].
• The Trust is not actively managed, does not use leverage or derivatives, and does not generate income; expenses are paid by delivering or selling ZEN, which can reduce the Trust's assets and cause taxable events for shareholders [S1,S2].
• The Trust's net assets decreased significantly over recent periods due to depreciation in ZEN prices and payment of Sponsor's fees in ZEN, with net assets at $3.778 million as of June 30, 2026, down from $7.096 million a year earlier [S2].
• ZEN price on the principal market (Coinbase) declined from $7.38 at June 30, 2025 to $4.03 at June 30, 2026, impacting the Trust's NAV per Share which was $0.33 as of June 30, 2026 [S2].
• The Trust has no cash balance and does not record cash flow from operations; expenses are paid by selling ZEN or related assets as needed [S2].
• The Sponsor assumes most ordinary expenses, with the Sponsor's Fee being the primary expense charged to the Trust [S2].
• The Trust is classified as an investment company for U.S. GAAP purposes but is not registered under the Investment Company Act [S2].
• The Trust's principal market for ZEN is selected based on volume, activity, and price stability, currently identified as Coinbase [S2].
• The Trust's Shares have traded at both premiums and discounts to NAV, sometimes substantially, and have not consistently met the investment objective [S2].
• The Sponsor and the sole Authorized Participant are affiliated entities, which may create conflicts of interest and non-arm's-length transactions in Creation Baskets [S1,S6].
• The Trust may be required to sell ZEN or related assets at depressed prices to pay extraordinary expenses, which can negatively impact Share value [S1].
• The Trust's payment of expenses in ZEN can create taxable events for shareholders without associated distributions [S1].
• There is regulatory uncertainty regarding whether ZEN or transactions in ZEN are securities under U.S. federal law; the Sponsor believes ZEN is not a security but acknowledges the SEC or courts may take a different view, which could materially affect the Trust [S1].
• The Trust's net realized and unrealized losses on ZEN investments have been significant in recent quarters, driven by ZEN price depreciation [S2].
• The Trust's NAV and Reference Rate Price are calculated using prices from multiple trading platforms including Coinbase, Binance, ByBit, and OKX [S2].
• The Trust's Sponsor changed in 2025, with GSIS becoming the sole Sponsor [S21].
• The Trust's Shares are traded on OTC Markets and have historical data showing premiums and discounts relative to NAV [S4].
• The Trust's Sponsor and its indirect parent company DCG have significant influence and potential conflicts of interest, including ownership stakes and related party transactions [S18].
• Recent news includes launches and rebalancing of related Grayscale crypto investment products, but no direct news on HZEN itself [N4,N5,N6,N7,N8].