Grayscale files application with SEC to launch first ETF on Zcash
Grayscale submitted an application to the SEC to launch the first ETF dedicated to Zcash, with the aim of bringing ZEC coin privacy to NYSE Arca at a time of strong institutional interest.
Grayscale Investments has taken an important step towards bringing to market the first US ETF linked to a privacy-focused cryptocurrency. The digital asset manager has filed a Form S-3 with the Securities and Exchange Commission (SEC), seeking approval to convert its historic Zcash Trust into a spot ETF listed on NYSE Arca.
If approved, the new product, tentatively called the Grayscale Zcash Trust ETF (ZCSH), would become the first regulated investment vehicle to offer direct exposure to Zcash (ZEC), a cryptocurrency known for its optional privacy features.
The move comes as institutional interest in alternative crypto assets continues to grow, following recent listings of spot ETFs on Bitcoin, Ether, Dogecoin and XRP by Grayscale and other issuers.
A goal for privacy coins
Zcash, created in 2016 by a team of cryptographers and engineers, started out as an alternative version of Bitcoin with one key difference: users can choose to protect the details of their transactions.
Privacy-coins are based on zk-SNARKs, a form of zero-knowledge proof that allows transactions to be verified without revealing the sender, recipient or amount. This technology has attracted new attention as the issue of privacy returns to centre stage in the crypto sector.
According to Grayscale, the trust currently holds around 2.4 per cent of all circulating ZEC supply, representing one of the largest institutional pools of the asset.
We've filed the ZCSH Form S-3 - an important step required to launch the first ZEC ETPs.
Zcash launched in 2016. Seeing the potential of the Zcash protocol, we launched Grayscale Zcash Trust (Ticker: ZCSH) as a private placement in 2017.
The company claims that with privacy set to become "fundamental to the entire crypto industry", Zcash could emerge as a strategic component in diversified digital wallets.
The market reacts as Zcash's rally continues
The filing comes at a time of strong upside for Zcash. Data from analytical platforms show that ZEC is up more than 50 per cent in the past month and more than 1,000 per cent in the past year, driven by renewed investor interest and an increase in screened transactions.
The latest rally has brought ZEC back into the spotlight of both retail traders and institutions looking for alternatives to Bitcoin.
Grayscale's move follows a series of expansions in the ETF market. The firm launched the first ETF spot on Dogecoin this week, while competitors such as BlackRock and Bitwise have expanded their product lines to meet the growing demand for regulated crypto exposure.
Institutional interest on the rise
The push on ETFs is not the only sign of growing institutional attention. Earlier this month, Leap Therapeutics announced it will use part of a $50 million investment it received from Winklevoss Capital to buy ZECs to hold in treasury, an unusual choice for a company so visible to the public.
Some analysts believe that the focus on Zcash's privacy may attract investors looking for features that Bitcoin does not offer. Others are more cautious, pointing out that privacy-oriented cryptocurrencies often face regulatory hurdles.
The SEC will now review the application to assess whether the proposed ETF meets listing requirements. Should it be approved, it would represent a milestone for privacy coins and could pave the way for broader institutional participation in the Zcash ecosystem.
For now, the submission of the application alone has been enough to bring ZEC back into the spotlight, putting the 2016-born privacy coin back at the centre of one of the most closely watched regulatory developments in the crypto sector.
Ripple is rumoured to be planning a $1 billion XRP buyback via a new treasury vehicle. Here is what is known, what is just speculation and what it could mean for the markets.
The Mitsubishi UFJ Financial Group (MUFG) launched ASTOMO, a security token platform, opening up the fractional real estate market to retail investors. An analysis of the rapidly expanding Japanese market.
Grayscale Investments has taken an important step towards bringing to market the first US ETF linked to a privacy-focused cryptocurrency. The digital asset manager has filed a Form S-3 with the Securities and Exchange Commission (SEC), seeking approval to convert its historic Zcash Trust into a spot ETF listed on NYSE Arca.
If approved, the new product, tentatively called the Grayscale Zcash Trust ETF (ZCSH), would become the first regulated investment vehicle to offer direct exposure to Zcash (ZEC), a cryptocurrency known for its optional privacy features.
The move comes as institutional interest in alternative crypto assets continues to grow, following recent listings of spot ETFs on Bitcoin, Ether, Dogecoin and XRP by Grayscale and other issuers.
A goal for privacy coins
Zcash, created in 2016 by a team of cryptographers and engineers, started out as an alternative version of Bitcoin with one key difference: users can choose to protect the details of their transactions.
Privacy-coins are based on zk-SNARKs, a form of zero-knowledge proof that allows transactions to be verified without revealing the sender, recipient or amount. This technology has attracted new attention as the issue of privacy returns to centre stage in the crypto sector.
According to Grayscale, the trust currently holds around 2.4 per cent of all circulating ZEC supply, representing one of the largest institutional pools of the asset.
The company claims that with privacy set to become "fundamental to the entire crypto industry", Zcash could emerge as a strategic component in diversified digital wallets.
The market reacts as Zcash's rally continues
The filing comes at a time of strong upside for Zcash. Data from analytical platforms show that ZEC is up more than 50 per cent in the past month and more than 1,000 per cent in the past year, driven by renewed investor interest and an increase in screened transactions.
The latest rally has brought ZEC back into the spotlight of both retail traders and institutions looking for alternatives to Bitcoin.
Grayscale's move follows a series of expansions in the ETF market. The firm launched the first ETF spot on Dogecoin this week, while competitors such as BlackRock and Bitwise have expanded their product lines to meet the growing demand for regulated crypto exposure.
Institutional interest on the rise
The push on ETFs is not the only sign of growing institutional attention. Earlier this month, Leap Therapeutics announced it will use part of a $50 million investment it received from Winklevoss Capital to buy ZECs to hold in treasury, an unusual choice for a company so visible to the public.
Some analysts believe that the focus on Zcash's privacy may attract investors looking for features that Bitcoin does not offer. Others are more cautious, pointing out that privacy-oriented cryptocurrencies often face regulatory hurdles.
The SEC will now review the application to assess whether the proposed ETF meets listing requirements. Should it be approved, it would represent a milestone for privacy coins and could pave the way for broader institutional participation in the Zcash ecosystem.
For now, the submission of the application alone has been enough to bring ZEC back into the spotlight, putting the 2016-born privacy coin back at the centre of one of the most closely watched regulatory developments in the crypto sector.
Read Next
Not Just Survival: Kraken Thrives and Redefines the Crypto Market with xStocks
Kraken marks a historic Q3 2025 with $648 million in revenue and an innovation that unites Wall Street and Web3.
Ripple aims at a $1 billion XRP treasury fund, but is it real?
Ripple is rumoured to be planning a $1 billion XRP buyback via a new treasury vehicle. Here is what is known, what is just speculation and what it could mean for the markets.
MUFG launches ASTOMO for real estate tokens
The Mitsubishi UFJ Financial Group (MUFG) launched ASTOMO, a security token platform, opening up the fractional real estate market to retail investors. An analysis of the rapidly expanding Japanese market.
NYSE Owner ICE Invests $2 Billion in Polymarket: Prediction Markets Break into Mainstream
The Intercontinental Exchange (ICE), owner of the NYSE, announced a massive $2 billion investment in Polymarket, valuing the platform at $9 billion.