Grayscale Investments continues to expand its portfolio of exchange-traded products, having filed an updated amendment with the U.S. Securities and Exchange Commission (SEC) to convert its existing Zcash Trust into a full-fledged ETF. If the regulator approves this move, we will witness the emergence of the first exchange-traded fund in America directly tracking the ZEC price — a significant signal for the entire privacy cryptocurrency segment.
In the new version of the document, the trust has been officially renamed The Zcash ETF. The fund's key parameters are already set: the annual sponsor fee will be 2.5%, which falls within the range typical for niche crypto ETFs. The listing is planned on the NYSE Arca exchange under the ticker ZCH. Coinbase Custody Trust Company is named as the custodian, adding institutional reliability, while Bank of New York Mellon will take on the role of transfer agent.
This is not Grayscale's first attempt to bring ZEC to the traditional market — the company has previously initiated similar processes for other assets, but here we see detailed structuring. The choice of Coinbase and BNY Mellon indicates a commitment to meeting strict SEC standards, especially regarding asset custody and accounting. For Zcash, which has long remained in the shadow of more liquid coins, such an ETF would be a powerful catalyst for legitimacy: institutional investors would gain regulated access to anonymous transactions without needing to deal directly with crypto exchanges.
However, it is worth remembering that the SEC has historically been cautious with products related to privacy. Issues of compliance with anti-money laundering (AML) requirements and transparency could become a stumbling block. Nevertheless, the very fact of updating the filing is not just a formality, but an active dialogue with the regulator, which in recent months has shown a softening stance on crypto ETFs.
My forecast: if the SEC approves ZCH, it will open the gateway for similar products on other privacy coins, but the path will be thorny. Investors should keep an eye on developments — any shift in this story could noticeably impact ZEC's liquidity and price in the medium term.