Zcash (ZEC) quotes have soared to their highest levels in eight years. The reason is another, already the fifth, step by Grayscale towards launching an exchange-traded fund (ETF) based on this asset. The market perceived the news as a signal of imminent approval by the SEC, and investors began actively buying up the token.
Application details: fee, ticker, and infrastructure
In the updated version of the document filed on Tuesday, Grayscale finally disclosed the key parameters of the future product. The management company will set an annual fee of 2.5% of the trust's net asset value, accrued daily. The fund itself will be renamed The Zcash ETF, and its shares are planned to be listed on the NYSE Arca exchange under the ticker ZCSH.
This is an important step that fills the gaps in previous versions of the application. Now the regulator has a complete picture of the product's structure, which increases the chances of a positive decision. If the ETF is approved, it will become the first exchange-traded instrument in the US to directly track the Zcash price.
Infrastructure and commitments
Token custody will be handled by Coinbase Custody Trust Company, while transfer agent and administrator functions will be taken on by Bank of New York Mellon. Notably, Grayscale has voluntarily committed to directing all fee revenue to marketing and product development during the first 12 months. However, this is not a strict requirement — the company can abandon it at any time, which should be considered in long-term forecasting.
Market dynamics: ZEC — growth leader
Over the past 24 hours, the ZEC price has risen by 34%, marking the best result among the top-100 cryptocurrencies by market capitalization. On Saturday, the token surpassed the $800 mark for the first time since January 2018, reaching an intraday high of $857, before correcting to $784.
This surge is especially telling against the backdrop of June's crash, when quotes lost about half their value due to a discovered vulnerability in one of the network's shielded pools. An emergency update then helped stabilize the situation, but trust in the asset was undermined. The current growth signals a recovery of interest, although there is still a long way to go to the all-time high of $3191 recorded in October 2016.
Analytical perspective
The situation around Zcash is a classic example of how institutional interest can radically change an asset's fate. However, I would not advise chasing the current price without caution. ETF approval is not a guaranteed scenario, and the 2.5% fee is one of the highest on the market, which could deter conservative investors. In the short term, volatility will remain high, and only the SEC's decision will be the determining factor for ZEC's further movement.