Grayscale has filed an updated application to launch a Zcash ETF: a new step toward legalizing ZEC in the US
Grayscale Investments continues to actively promote institutional access to private crypto assets. This time, the company has submitted an updated amendment to the U.S. Securities and Exchange Commission (SEC) for converting its existing Zcash Trust into a full-fledged exchange-traded fund (ETF). If the regulator approves this move, the product would become the first ETF in the United States to directly track the price of ZEC.
In the new version of the document, the trust has been officially renamed The Zcash ETF. Key parameters have also undergone changes: the annual sponsor fee has been set at 2.5%, reflecting the premium nature of the product for a niche asset. Listing is planned on the NYSE Arca exchange under the ticker ZCH. Coinbase Custody Trust Company is named as the custodian, while Bank of New York Mellon will take on the role of transfer agent.
This is not Grayscale's first attempt to expand its ETF lineup with privacy coins. Previously, the company has filed similar applications for other assets, but Zcash stands out specifically due to its technological uniqueness—the use of zk-SNARKs to protect transactions. If successful, this would create a precedent for legitimizing private cryptocurrencies within traditional financial instruments.
However, the path to approval remains thorny. The SEC has historically been wary of assets with anonymization features, citing risks of money laundering and financing illegal activities. Nevertheless, the updated filing with clear parameters—fee, custodian, and exchange—signals the seriousness of Grayscale's intentions and its readiness for dialogue with the regulator.
My analytical perspective: The success of a Zcash ETF could radically change how privacy coins are perceived on Wall Street. If the SEC gives the green light, it would open the floodgates for other confidential projects, but it would also require issuers to implement enhanced compliance measures. The 2.5% fee is above the market average, which compensates for operational costs and regulatory risks, but investors should be prepared for volatility tied to political pressure on this segment.