Grayscale Files to Launch Spot Zcash ETF
Grayscale has filed a registration statement with the US Securities and Exchange Commission (SEC). The company wants to convert its Zcash (ZEC) Trust into an exchange-traded fund (ETF).
First Privacy Token-Focused Spot ETF
If approved, this will be the first US ETF focused on a privacy token. The filing used Form S-3, a key regulatory step toward the ETF launch. The fund will provide regulated exposure to Zcash. Zcash is a privacy-centered cryptocurrency made for secure transactions with optional privacy features on its blockchain.
Grayscale plans to list the ETF shares on NYSE Arca under the ticker ZCSH. However, the company said it currently cannot support in-kind share creation or redemption with authorized participants. This is due to ongoing market uncertainties and unclear procedures from broker-dealers under the new rules.
Growing Interest in Altcoin ETFs
Many issuers are now offering altcoin ETFs. Grayscale recently converted other single-asset trusts into ETFs, including XRP, Dogecoin, and Solana. The Zcash Trust, launched in 2021, manages about $196 million in assets.
The move comes amid a strong demand surge for privacy tokens. Zcash (ZEC) has gained over 500% in the past two months. It rose 5% on Monday, reducing its weekly loss to 17%.
