8-K: Grayscale Zcash Trust Amends Trust Agreement to Align Business Day Definition with Securities Exchange Closures
Trust Agreement Amendment
Grayscale Zcash Trust has amended its trust agreement to redefine 'Business Day' to align with closures of national securities exchanges, rather than bank closures.
Summary
- Grayscale Zcash Trust (ZEC) has modified its Trust Agreement by entering into Amendment No. 3.
- The amendment changes the definition of 'Business Day' to mean any day other than a Saturday, Sunday, or a day when national securities exchanges are closed in New York, New York.
- Previously, a 'Business Day' was defined as any day other than a Saturday, Sunday, or a day when banks are closed in New York, New York.
- This change ensures that the Trust's operational calendar is aligned with the trading schedule of securities exchanges.
Sentiment
Score: 7
Explanation: The document reflects a routine administrative update, which is generally neutral to positive. It indicates a move towards standardization and clarity, which is beneficial for investors.
Positives
- The amendment clarifies the definition of 'Business Day', aligning it with securities exchange schedules.
- This change provides more clarity and consistency for the Trust's operations.
Management Comments
- Michael Sonnenshein, CEO of Grayscale Investments, signed the amendment on behalf of the sponsor.
Industry Context
This amendment reflects a move towards standardizing operational definitions within the cryptocurrency trust sector, ensuring alignment with traditional financial market practices.
Comparison to Industry Standards
- Many financial instruments and trusts use the closure of securities exchanges to define a business day.
- This change brings the Grayscale Zcash Trust in line with common industry practice.
- Other cryptocurrency trusts, such as those offered by Bitwise and Osprey, also typically align their business day definitions with securities exchange closures.
Stakeholder Impact
- The change provides clarity for shareholders regarding the operational calendar of the Trust.
- The amendment ensures that the Trust's operations are aligned with the trading schedule of securities exchanges.
Key Dates
| Date | Description |
|---|---|
| July 3, 2018 | Date of the original Amended and Restated Declaration of Trust and Trust Agreement. |
| January 11, 2019 | Date of Amendment No. 1 to the Trust Agreement. |
| June 28, 2022 | Date of Amendment No. 2 to the Trust Agreement. |
| March 22, 2024 | Date of Amendment No. 3 to the Trust Agreement and effective date of the change. |
| March 25, 2024 | Date of the 8-K filing. |
Keywords
Grayscale Zcash Trust, ZEC, Trust Agreement, Business Day, Amendment, Securities Exchange, Delaware Trust Company, Grayscale Investments
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