Winklevoss files for Zcash spot ETF with a proposed fee one-tenth of Grayscale’s

Winklevoss Asset Services has asked federal regulators to approve a new spot Zcash ETF that would trade on Nasdaq under the ticker WINK, placing the twins once again at the center of a crypto product fight more than a decade after their first attempt at a bitcoin fund. The preliminary S-1 registration statement, filed with the U.S. Securities and Exchange Commission, proposes a fund that would hold ZEC directly rather than through derivatives.

Key takeaways

• Winklevoss Asset Services filed an S-1 for a Nasdaq-listed Zcash ETF under the ticker WINK.
• Gemini Trust Company would custody the fund’s ZEC, and the sponsor fee is set at 0.25% annually.
• Cypherpunk Technologies would act as the fund’s Zcash ecosystem partner.
• Winklevoss Capital Fund has nonbinding interest in buying up to $100 million of shares.
• Grayscale’s ZCSH is already trading on NYSE Arca and recently completed a 3-for-1 split.

Winklevoss Asset Services files for spot Zcash ETF with SEC

The proposed fund would hold ZEC directly and use Gemini Trust Company as custodian, according to the filing reported by The Block. A 0.25% annual sponsor fee would be imposed by the ETF, which would also cover routine operating costs. Winklevoss Asset Services, the newly formed sponsor, is wholly owned by Winklevoss Asset Services Holdings and would list the fund on Nasdaq under the symbol WINK.

Cypherpunk Technologies joins as Zcash ecosystem partner

Cypherpunk Technologies has agreed to act as the trust’s partner within the Zcash ecosystem, taking on responsibilities that include protocol development and polling coinholders. This filing comes 13 years after the Winklevoss twins initially pursued a spot bitcoin ETF, an application the SEC turned down in 2017 due to manipulation concerns. Winklevoss Capital Fund has, through one or more affiliates, expressed non-binding interest in acquiring as much as $100 million worth of WINK shares upon the fund’s launch, although the filing emphasizes this amount does not represent a firm commitment.

Grayscale’s live Zcash ETF would be WINK’s rival

Should Winklevoss launch its product, it would join a market where Grayscale’s ZCSH ETF is already trading on NYSE Arca, having converted from a long-standing Zcash Trust back in August. On September 30, ZCSH carried out a 3-for-1 share split, lifting the number of outstanding shares from 7.99 million to 23.97 million and lowering net asset value per share from $111.41 to $37.14, though total investor holdings remained unaffected in value. According to Grayscale’s prospectus, its annual sponsor fee stands at 2.5%—ten times the rate Winklevoss Asset Services has put forward for WINK. Prior to the split, Digital Currency Group had already poured roughly $100 million into ZCSH, a deal that, unlike Winklevoss Capital’s indication, actually went through. A Zcash ETF filing from Bitwise brings a third competitor into a market that previously offered U.S. investors just one live avenue for direct ZEC exposure via a brokerage account.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.