Grayscale files to convert Zcash trust into first US spot ETF
Grayscale has submitted an amended regulatory filing to convert its existing Zcash trust into a spot exchange-traded fund, potentially creating the first publicly traded vehicle in the United States dedicated to the privacy-focused digital asset.
Grayscale has submitted an amended regulatory filing to convert its existing Zcash trust into a spot exchange-traded fund. The proposed product would list on NYSE Arca under the ticker symbol ZCH. This marks the asset manager's latest push to bring privacy-focused digital assets to traditional public markets.
If approved by the Securities and Exchange Commission, the vehicle would become the first exchange-traded fund in the United States to directly track Zcash. This development signals a broadening of the crypto exchange-traded fund landscape beyond major assets like bitcoin and Ethereum. It offers institutional investors a regulated conduit for niche digital tokens.
The amended documentation outlines a sponsor fee of 2.5 percent on an annual basis. The Bank of New York Mellon will act as the transfer agent for the product. Meanwhile, Coinbase Custody Trust Company will serve as the custodian to secure the underlying digital assets.
The fund intends to issue an indeterminate number of shares on a continuous basis. Pricing for these shares will fluctuate based on the underlying value of Zcash and secondary market trading activity on the exchange. Furthermore, a subsidiary of Digital Currency Group is currently in discussions to contribute approximately 200,000 ZEC to the newly structured fund.
Grayscale already manages more than a dozen crypto exchange-traded funds across the sector. Its existing lineup includes established products tracking bitcoin, Ethereum, Dogecoin, and XRP. The firm has operated the legacy Zcash trust since 2017, which currently holds over $260 million in assets under management as of Friday.
Created in 2016, Zcash currently ranks as the twelfth-largest cryptocurrency by market capitalization and is explicitly designed to prioritize user privacy. Bloomberg Intelligence exchange-traded fund analyst James Seyffart noted the regulatory progress on the social platform X. He stated that it "looks like they're getting closer and closer to converting this thing into an ETF."
