Grayscale Says Crypto ETFs Enter a New Phase as Its Zcash Fund Passes $1 Billion

Grayscale’s Zcash ETF has pulled in more than $1 billion during its first 30 trading days, according to Krista Lynch, the firm’s head of trading and capital markets and a managing director. She said that places it in the top 1% of ETFs launched over the past decade, measured by assets gathered in the first month. Speaking to The Starting Block at Token2049 Singapore, Lynch said the market is moving past Bitcoin and Ether, with issuers growing more careful about which tokens can support a fund.

She runs the desk that sources or sells the underlying token for every creation and redemption across Grayscale’s ETF lineup, and said the job now includes business development and investor education. Even at Token2049, she noted, many questions start with the basics, such as what Bitcoin or Ethereum is.

SEC Generic Listing Standards for Crypto ETFs

Lynch said the SEC’s generic listing standards now cover about 15 tokens, giving issuers more room to pick products based on investor demand and their own conviction. In January, Grayscale said it had 27 assets under consideration across AI, DeFi, consumer and infrastructure themes.

Grayscale Tokenization Filing After the CLARITY Act Failure

Last week, Grayscale filed to tokenize two 1940 Act products, a Bitcoin covered call fund and an Ether covered-call fund, using the SEC’s new innovation exemption. Lynch called the exemption a “consolation prize” after the CLARITY Act failed, adding that the outcome at least removed the uncertainty.

Crypto Firms Push SEC to Speed ETF Reviews

Last month, Grayscale joined other crypto companies in urging the SEC to accelerate ETF reviews and allow confidential draft filings.