Zcash (ZEC) is showing an impressive surge, reaching price levels not seen since January 2018. The key catalyst was another update to the exchange-traded fund (ETF) application from Grayscale, which the market perceived as a signal of imminent product approval.
The fifth edition of the S-3 document, filed with the U.S. Securities and Exchange Commission (SEC), closed the remaining gaps in the structure of the future fund. The management company set an annual fee of 2.5% of net asset value, and the trust itself will be renamed The Zcash ETF. Trading of shares is planned to launch on the NYSE Arca exchange under the ticker ZCSH, which would be the first exchange-traded product in U.S. history to directly track the price of this anonymous token.
The documentation emphasizes that the fund's securities are not a direct investment in ZEC, but they provide investors with convenient and relatively inexpensive access to the asset's price dynamics. Grayscale has also committed to directing all fees to marketing and product development during the first year, although this is more of a voluntary gesture than a strict regulatory requirement. Token custody will be provided by Coinbase Custody Trust Company, while Bank of New York Mellon will take on the roles of administrator and transfer agent.
Recovery after the crisis of confidence
Over the past 24 hours, ZEC has surged 34%, becoming the absolute growth leader among the top 100 cryptocurrencies by market capitalization. On Saturday, the asset broke through the $800 mark for the first time since January 2018, reaching an intraday high of $857, before correcting to $784. Notably, the current peak is still four times below the all-time high of $3,191 recorded in October 2016.
The recovery in quotes looks especially impressive against the backdrop of the June crash, when security analysts identified a critical vulnerability in the protected pools of the Orchard network. At that time, the token's value nearly halved, and only an emergency protocol update managed to stabilize the situation. The current growth demonstrates that the market is willing to forgive past problems if it sees a clear institutional development trajectory.
My view: the filing of the fifth edition is a clear signal that Grayscale is in close dialogue with the SEC and is clearing up the final formalities. However, one should not forget that the regulator's decision has not yet been made, and in the event of a rejection, we could see an equally rapid correction. Investors should closely monitor the news flow rather than chase the growth that has already occurred.