ZEC could dip below $500 as Grayscale files to convert its Zcash Trust to an ETF
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The cryptocurrency market has been bullish over the past few hours, with Bitcoin briefly reclaiming the $91k level.
Ether is also trading above $3k, while XRP has reclaimed the $2.2 resistance level.
However, ZEC, the native coin of the Zcash blockchain, is down 1% in the last 24 hours.
Its bearish performance comes despite Grayscale filing a registration statement with the US Securities & Exchange Commission (SEC), seeking to convert its Zcash (ZEC) Trust into an exchange-traded fund (ETF).
Grayscale to convert Zcash Trust to an ETF
The altcoin ETF season is here, and several altcoins already have spot ETFs, including XRP, Solana, Ethereum, and Dogecoin.
Digital asset manager Grayscale is now planning to launch the first-ever privacy token-focused spot ETF.
The company filed with the SEC on Wednesday to convert its Zcash Trust to an ETF.
Grayscale filed the Form S-3 with the regulator, a move that would introduce the first Zcash-focused investment fund in the US.
If approved, the ETF would offer regulated exposure to Zcash.
Zcash is a privacy-centric cryptocurrency built to enable secure transactions with optional disclosure features on its blockchain.
In its filing, Grayscale revealed that it intends to list the fund on NYSE Arca under the ticker ZCSH.
Furthermore, Grayscale added that it cannot support in-kind share creation or redemption with authorized participants at the moment.
This limitation comes from the current uncertain market conditions.
According to Grayscale, the broker-dealers and other participants have yet to clarify how they will update their procedures to align with the new regulatory framework, leaving the timeline for adopting in-kind mechanisms unresolved.
The Grayscale Zcash Trust has been around since 2021 and currently has $196 million in assets under management.
The conversion to an ETF comes amid a recent surge in demand for privacy tokens.
ZEC has rallied by more than 800% over the last year, reaching a yearly high of $742 earlier this month.
ZEC could dip below $500 as trading volume eases
The ZEC/USD 4-hour chart is bearish, and Zcash has lost 1% of its value over the last 24 hours.
The coin is trading around $508 and could drop below the $500 psychological level if the bearish trend continues.
The 4-hour Relative Strength Index (RSI) of 40 is below the neutral 50, indicating that the bears remain in control of the pair.
The MACD lines also flashed a sell signal last week and have yet to push higher into the positive region.
If the bearish trend continues, ZEC could dip below $500 and retest the Saturday low of $476.
An extended bearish performance could see ZEC drop to the November 11 support level of $426.
However, if ZEC recovers, it could rally towards the first major resistance level at $593 over the next few hours or days.
The swing high at $643 could provide near-term resistance.
The post ZEC could dip below $500 as Grayscale files to convert its Zcash Trust to an ETF appeared first on Invezz
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