Grayscale Investments continues its active expansion in the realm of cryptocurrency 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 exchange-traded fund. If the regulator approves the document, it will set a precedent: an ETF directly tracking the ZEC price will appear on the American market for the first time.
In the revised version of the application, the trust has been renamed The Zcash ETF, underscoring a strategic shift from a classic trust structure to a modern format. Key parameters of the fund have already been defined: the sponsor fee will be 2.5% per year — noticeably higher than competitors based on Bitcoin or Ethereum, but justified by the specifics of a niche asset. The listing is planned on the NYSE Arca exchange under the ticker ZCH, providing investors with convenient access to the instrument through traditional brokerage accounts.
The infrastructure component has also been thoroughly developed. Coinbase Custody Trust Company has been appointed as custodian, already established as a reliable digital asset custodian for institutional clients. Bank of New York Mellon — one of the world's largest banks — will take on the role of transfer agent, adding an additional layer of trust to the product's structure.
This step by Grayscale is not merely a formality but a signal of growing institutional interest in privacy cryptocurrencies. Thanks to zk-SNARKs technology, Zcash remains one of the few projects capable of offering genuine transaction anonymity, which sets it apart from mainstream coins. However, the path to SEC approval will not be easy: the regulator has traditionally been wary of assets with privacy features due to money laundering risks.
My assessment: if the application is approved, it will pave the way for an entire class of ETFs on privacy coins, but the likelihood of a positive decision in the current political climate remains moderate. Nevertheless, the very fact of updating the document demonstrates Grayscale's confidence in the long-term potential of ZEC.