Grayscale Opens Horizen Trust to Accredited Investors Amid Market Rally
Grayscale has opened its Horizen Trust (HZEN) to accredited investors, allowing exposure to ZEN tokens without direct ownership or management. This decision follows the completion of Horizen's (ZEN) final halving, which has contributed to a rally in the current crypto bull market. However, ZEN's value remains significantly below its all-time high reached in 2021.
Grayscale has managed the Horizen Trust for several years, but it was not previously available for trading. The company's decision aligns with its strategy of launching new Trusts and ETFs, amid market challenges.
The final halving for Horizen represents a significant milestone. Unlike Bitcoin’s recurring halvings, this event transitions ZEN to a new token model with a declining emission rate. Halvings typically reduce the number of tokens issued as mining rewards, often leading to price increases. Although ZEN's current value is around 10% of its 2021 peak, the recent bull market and final halving have generated renewed optimism.
Grayscale's announcement highlights that the Horizen Trust enables investors to benefit from ZEN’s growth potential without managing cryptocurrency directly. ZEN is a minable token, which saw a price surge during the 2021 crypto boom but subsequently faced a crash and stabilized in 2022. Recent gains suggest a possible recovery, prompting Grayscale to proceed with HZEN.
Grayscale has launched various offerings, including Trust products based on Lido DAO, Optimism, and Stellar (XLM). It is also pursuing ETFs, having applied for a Solana ETF earlier this month. However, Grayscale's ETFs face stiff competition from major players like BlackRock, which introduced its own Bitcoin ETF this year. Additionally, Grayscale sold $150 million in Bitcoin despite rising values, raising concerns about its long-term ETF strategy.
The current rally in Horizen and its final halving could indicate improved prospects, with Grayscale potentially testing the waters by publicly opening HZEN. As the crypto market shows signs of recovery, this decision may reflect confidence in Horizen’s future or part of a broader expansion strategy. The long-term success of HZEN remains uncertain due to market volatility.
In summary, Grayscale’s move to make Horizen Trust publicly available indicates renewed interest in ZEN, despite its lower value compared to its peak. The final halving and a bullish market have instilled hope for Horizen’s recovery, while Grayscale continues to explore its Trust and ETF offerings. Investors will closely monitor whether ZEN can maintain upward momentum and if Grayscale's investment in Horizen is successful.