Grayscale Advances Toward First US Zcash ETF With New SEC Filing

Grayscale has moved closer to launching a Zcash exchange-traded fund after filing its fifth amendment with the Securities and Exchange Commission on Friday, marking another step toward converting its existing trust into what would be the first US ETF tracking the privacy focused cryptocurrency.

Key Details From the Latest Filing

The updated filing renames the trust to The Zcash ETF and sets an annual sponsor fee of 2.5%. The proposed fund would trade on NYSE Arca under the ticker symbol ZCH, with Bank of New York Mellon serving as transfer agent and Coinbase Custody handling asset storage. Grayscale said shares would be issued continuously and priced based on Zcash’s market value at the time of each sale.

Background on the Fund and Zcash

Earlier this week, Grayscale disclosed that a Digital Currency Group subsidiary was in talks to potentially contribute roughly 200,000 ZEC to the fund. Grayscale’s Zcash Trust has operated since 2017 and currently holds more than $260 million in assets. Zcash, created in 2016, ranks as the 12th-largest cryptocurrency by market value and is known for its privacy-focused design.

Industry Reaction

Bloomberg analyst James Seyffart noted that Grayscale appears increasingly close to securing approval for the conversion, should the SEC give its final sign-off.