Zcash (ZEC) has made a powerful surge, updating price highs not seen since 2018. The key catalyst was another, already the fifth, attempt by Grayscale to register an exchange-traded product based on this anonymous token with the SEC. The market clearly perceived this as a signal of an inevitable ETF launch.
In the updated version of the application filed this week, the asset management company finally disclosed the key parameters of the product. The management fee will be 2.5% per annum of net assets, accrued daily. The trust itself has been renamed The Zcash ETF, and trading of its shares is planned to launch on the NYSE Arca exchange under the ticker ZCSH. In essence, Grayscale has closed all the technical gaps it previously left in the documentation, indicating a high degree of readiness for launch.
It is important to emphasize: the fund's securities are not direct ownership of ZEC, but they provide institutional players with a convenient and relatively inexpensive tool for exposure to this asset. 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. Within 12 months, Grayscale has also committed to directing all fee revenue to marketing and product development — a step that demonstrates the seriousness of its intentions.
The market votes with its wallet
Investors did not keep them waiting. Over the past 24 hours, the ZEC price has risen by 34% — the best result among the top-100 cryptocurrencies by market capitalization. On Saturday, the token surpassed the $800 mark for the first time since January 2018, reaching a local peak of $857. However, after such a rapid move, a natural correction followed, and the asset pulled back to around $784.
It is worth recalling that Zcash's all-time high was recorded back in October 2016 at $3,191, so the current growth is merely a return to long-forgotten levels. Notably, this rally was preceded by a June decline, when the token lost about half its value due to a discovered vulnerability in the protected Orchard pool. However, an emergency network update managed to stabilize the situation, and now the market has shifted to a positive scenario.
My view: filing for an ETF for such a niche asset as Zcash is a bold and strategically important step. If the SEC approves the product, it will not only ensure an influx of institutional capital but also legitimize the private coin segment in the eyes of traditional financiers. However, one should not forget about high volatility: the current growth may be partially speculative, and a correction is possible after the fund's launch. Investors should act cautiously rather than give in to euphoria.