The Zcash (ZEC) exchange rate has demonstrated an impressive surge, reaching its highest levels in eight years. The key catalyst for this movement was the intensification of Grayscale's efforts to launch an exchange-traded fund (ETF) based on this asset.
Last week, the asset management company submitted the fifth revision of its ETF registration application to the U.S. Securities and Exchange Commission (SEC). This step is not merely a formality but a clear signal that Grayscale intends to see the process through to completion. If approved, the product would become the first exchange-traded fund in the United States to directly track the Zcash exchange rate.
Details of the Fifth Application: Fee and Ticker
In the previous version of the document, two key parameters remained undisclosed: the fee amount and the fund's name. The fifth revision closed these gaps. According to the updated data, the manager will charge 2.5% annually of the trust's net asset value, accrued daily. The product itself has been named The Zcash ETF, with trading of its shares planned to open on the NYSE Arca exchange under the ticker ZCSH.
The documentation also emphasizes that, although investments in the fund's shares are not a direct investment in ZEC, they are designed to provide investors with simple and relatively inexpensive access to the token's price dynamics. Asset custody will be handled through Coinbase Custody Trust Company, while Bank of New York Mellon will take on the roles of transfer agent and administrator. Notably, Grayscale has committed to directing all fees toward marketing and product development for 12 months, although this promise is voluntary in nature.
Zcash — Market Growth Leader
The news of progress on the ETF triggered a powerful surge in buying activity. Over the past 24 hours alone, the ZEC exchange rate rose by 34%, marking the best result among the top 100 largest cryptocurrencies by market capitalization. On Saturday, the token broke through the psychologically important level of $800 for the first time since January 2018, reaching $857 during the day before correcting to approximately $784.
This breakthrough is especially significant given recent history. As recently as June, Zcash quotes experienced a crash following a security expert's disclosure of a vulnerability in one of the network's shielded pools. At that time, the token lost about half of its value, and only an emergency update helped stabilize the situation. The current recovery demonstrates the asset's high resilience and growing interest from institutional players.
My view: The fifth revision of the application is not just a technical adjustment but a clear signal that Grayscale is seeing the deal through to completion. The disclosure of the fee and fund name are the final touches before potential approval. If the SEC gives the green light, Zcash could become the next major beneficiary of institutional capital inflows, although the asset still has a long way to go before reaching its all-time high of $3,191 recorded in 2016.