Filing to convert its long-running Zcash Trust reflects accelerating institutional interest after ZEC’s 1,000% rally in 2025
Grayscale has taken a major step toward bringing privacy-focused cryptocurrencies into the U.S. ETF market, filing to convert its Zcash Trust into the nation’s first spot exchange-traded fund tracking ZEC. The move comes during a dramatic resurgence for the asset, which has surged more than 1,000% this year and emerged as one of 2025’s top-performing cryptocurrencies.
Grayscale Targets ETF Approval Amid Rising ZEC Adoption
The asset manager submitted an S-3 registration statement to the U.S. Securities and Exchange Commission, seeking permission to repackage its existing trust into a fully tradable ETF. The strategy follows the company’s earlier success converting its flagship Bitcoin product into an ETF, a model that helped open the door to broader institutional crypto exposure.
If approved, the Zcash fund would mark a milestone for the privacy-coin category — a sector historically viewed warily by regulators but increasingly recognized for its technological role in digital cash systems. Market analysts say the timing reflects a notable shift in sentiment.
“Demand for encrypted value transfer has accelerated sharply this year, and a regulated ETF structure could make Zcash accessible to a far wider investor base,”.
Zcash’s Breakout Year Repositions Privacy Coins
ZEC has vastly outperformed major digital assets in 2025, jumping more than 1,000% year-to-date and gaining over 40% in the past month. Its adoption metrics have also transformed: approximately 30% of transactions now use shielded addresses, and up to a quarter of the supply sits in fully encrypted wallets. These developments pushed Zcash ahead of Monero in market capitalization, signaling a shift in what investors view as the leading privacy-preserving network.
Grayscale’s ETF proposal suggests that institutions may now see privacy technology not as a niche feature but as foundational digital infrastructure. Should the SEC grant approval, Zcash would become the first privacy coin accessible through a U.S.-listed spot ETF — a move that could legitimize the category and solidify its role in the next phase of crypto market development.
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