Grayscale Files for Landmark Zcash ETF, Marking First of Its Kind

TL;DR

• Grayscale has filed with the SEC to convert its Zcash Trust into the first-ever spot ZEC ETF in the United States.
• The ETF aims to provide institutional and retail investors with direct exposure to Zcash while leveraging regulated custodial and brokerage infrastructure.
• ZEC has recently experienced a significant price recovery, surging over 1,000% in three months, reflecting renewed investor interest in privacy-focused cryptocurrencies.

Cryptocurrency asset manager Grayscale has submitted an S-3 registration statement to the U.S. Securities and Exchange Commission to launch the first-ever spot Zcash (ZEC) ETF in the United States. The move positions Grayscale to offer a regulated and accessible way for investors to gain exposure to ZEC, a privacy-focused cryptocurrency that has recently regained significant market momentum and is attracting attention from a broader range of institutional and retail participants.

Regulatory Framework And ETF Mechanics

According to the filing, the ETF would be listed on NYSE Arca under the ticker ZCSH. Coinbase Custody will serve as custodian, Coinbase as prime broker, and the Bank of New York Mellon as transfer agent and administrator. Grayscale’s Zcash Trust currently holds approximately 394,400 ZEC, valued at around $199.2 million at current prices. The company emphasizes Zcash’s privacy-preserving features, including shielded transactions enabled by zk-SNARKs, as a key factor in its suitability for a diversified digital asset portfolio and its potential to attract new types of investors seeking regulated exposure.

The SEC approval process for converting trusts into spot ETFs can vary widely. Previous conversions, such as Grayscale’s Dogecoin Trust, took roughly three months, while other multi-crypto ETFs have required closer to a year. Timing will depend on regulatory review and market conditions, with approval paving the way for institutional and retail investors to access ZEC via a familiar exchange-traded product and potentially boosting overall market liquidity.

Zcash Rally Drives Institutional Interest

ZEC has experienced a substantial surge since late September, rising more than 1,000% over three months. This recovery follows a period of regulatory-driven delistings in 2023 and 2024 that had suppressed the token’s liquidity and trading activity. The recent market momentum coincides with the launch of Cypherpunk, a U.S. public digital asset treasury targeting 5% of total Zcash supply, highlighting growing institutional interest in privacy-centric cryptocurrencies. Analysts also note that increased trading volumes across major exchanges are reinforcing ZEC’s market relevance and investor confidence.

The approval of a ZEC ETF could enhance liquidity, broaden market access, and reinforce Zcash’s position as a leading privacy-focused digital asset.