Grayscale Files for Zcash ETF with SEC
Grayscale submitted a registration statement to the Securities and Exchange Commission Wednesday seeking to convert its Zcash Trust into an exchange-traded fund. The filing would create the first U.S. spot ETF tracking Zcash if approved by regulators.
The investment manager's Zcash Trust currently holds over $196 million in assets under management as of Tuesday. Grayscale stated the fund's investment objective is for share value to reflect Zcash held by the trust, determined by reference to index pricing minus expenses and liabilities.
Zcash Overview and Adoption
Zcash launched in 2016 through Zerocoin Electric Coin Company to provide enhanced privacy features for users. The token ranks as the 23rd-largest cryptocurrency by market capitalization. Shielded transactions now represent roughly 30% of Zcash activity, with 20% to 25% of total supply held in encrypted addresses.
Approximately 30% of transactions now utilize the shielded pool, marking increased adoption of encrypted transaction features.
Recent Performance and Market Position
The filing follows substantial price appreciation for Zcash throughout the year. The token has climbed over 1,000% year-to-date and gained 40% during the past month alone. This performance surpasses both Bitcoin and Ethereum during the same periods.
Zcash has surpassed Monero in market capitalization to become the largest privacy-focused cryptocurrency.
Grayscale's ETF Strategy
Grayscale described the move as recognizing privacy becoming foundational across crypto. The firm views Zcash as a key contributor to well-balanced digital asset portfolios.
The conversion mirrors Grayscale's approach with previous products including its Bitcoin Trust, which became the first converted to an ETF in 2024. Over the past month, the firm has converted several closed-end trusts to exchange-traded products tracking XRP, Dogecoin, and Solana.
Regulatory Environment
The filing comes during a crypto-friendly regulatory environment at the SEC under the Trump administration as the agency works to clarify its stance on digital assets.