The phenomenal rally of Zcash (ZEC) continues: over the past 24 hours, the asset's price has surged by 34%, reaching $857. This is the best performance among the top-100 cryptocurrencies by market capitalization. The reason for this spike is another step—already the fifth—by Grayscale on its path to launching an exchange-traded fund (ETF) based on Zcash.
This week, Grayscale filed the fifth amendment to its trust registration application with the SEC. Unlike the previous version, where the management company left gaps, the new document discloses key parameters of the future product. The management fee will be 2.5% per annum of net asset value, accrued daily. This is an important signal indicating that the issuer is approaching the final stage of approval.
Details and infrastructure of the future ETF
The trust itself will be renamed The Zcash ETF. Trading in the fund's shares is planned to open on the NYSE Arca exchange under the ticker ZCSH. Token custody will be handled by Coinbase Custody Trust Company, while the functions of transfer agent and administrator will be taken on by Bank of New York Mellon. This is a standard set for institutional crypto products, indicating a high level of thoroughness in the application.
Notably, Grayscale has taken on a voluntary commitment to direct all fee revenue to marketing and product development during the first 12 months. Although this is not a strict regulatory requirement, such a move demonstrates the issuer's confidence in success and its desire to attract the maximum pool of investors.
Recovery after the "rough patch"
The current growth is an impressive recovery after the June crash, when security experts identified a critical vulnerability in one of the network's shielded pools. At that time, ZEC lost about half of its value. However, an emergency protocol update resolved the issue, and now the market has regained faith in the asset's potential.
The current price of $784-$857 is the highest level since January 2018. For comparison, Zcash's historical peak was recorded in October 2016 at $3,191. Despite the impressive current growth, the potential for further movement remains significant if the regulator gives the green light.
My view: The fifth amendment is not just a formality. Grayscale is consistently closing all technical issues, which indicates a high probability of approval. If the ETF is launched, it will open Zcash's access to institutional capital that previously ignored this privacy-focused asset. In such a scenario, we could see a test of the $1,000 level in the medium term. However, investors should keep in mind volatility: the market has already priced in a significant share of optimism, and any delay from the SEC could trigger a correction.