ZEC Soars Over 40% As Grayscale Eyes First US Zcash ETF

Zcash’s native token, ZEC, rose considerably as traders reacted to news of Grayscale’s application for a proposed exchange-traded fund (ETF) in the United States. On August 21, Grayscale filed Amendment No. 5 to its Form S-3 registration statement with the U.S. Securities and Exchange Commission (SEC). 

The token’s bullish reaction demonstrates how strongly markets can react to ETF expectations, even before an approval. At the time of writing, ZEC touched $819.42, a 42.8% increase within the past 24 hours, according to CoinGecko market data.

Grayscale Sets Out Its Proposed Zcash ETF Structure 

Under the amended filing, Grayscale intends to list the proposed shares on NYSE Arca. It will be traded under the ticker ZCSH, pending the approval of its registration statement. The trust will directly hold ZEC, and its shares will reflect the value of the crypto, minus any expenses and liabilities.

Grayscale aims to provide an easy way for investors to gain exposure to ZEC without directly buying crypto. According to the filing, Coinbase will act as the prime broker and custodian, while BNY Mellon will handle transfer-agent and administrative services for the trust.

The filing allows for cash and some in-kind creations with ZEC. However, in-kind redemptions are not currently allowed. Meanwhile, Grayscale is also discussing a possible contribution of around 200,000 ZEC from DCG International Investments. However, this remains non-binding and could be changed or even canceled.

Grayscale Maintains Zcash ETF Push

Grayscale’s consistent effort over the Zcash ETF has become increasingly visible through repeated regulatory updates and refinements to registration materials. The latest amendment shows that the company is committed to creating a publicly traded investment option for ZEC.  

Once the registration is approved and shares are listed, Grayscale plans to rename the Trust to the Zcash ETF. The change would transition to an investment product that has been a trust since 2017.  

Meanwhile, for Zcash, increased attention from institutional investors could open up new opportunities and provide traditional investors with another way to access privacy-focused crypto markets worldwide. However, just because the filing is in process does not mean the Zcash ETF will definitely launch. Approval from regulators is still needed.  

Grayscale emphasized that the securities cannot be sold until the registration is approved, highlighting that the proposal is still not complete. It also notes that ZEC is very volatile and that regulatory changes could significantly impact the value of shares.

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