Zcash (ZEC) has made a powerful surge, updating a price high that had held since 2018. The trigger was another step by Grayscale toward launching an exchange-traded fund for this anonymous token.
In the fifth edition of the application filed with the SEC, the asset management company finally disclosed key details of the future product. This concerns a fee of 2.5% per annum on the trust's net assets, accrued daily. Additionally, the fund has been officially named The Zcash ETF, and its shares will trade on NYSE Arca under the ticker ZCSH.
A New Chapter for Zcash
This is an important signal: Grayscale is consistently closing all gaps in the documentation, bringing closer the moment when the product becomes the first exchange-traded fund in the U.S. to directly track the Zcash price. Asset custody has been entrusted to Coinbase Custody Trust, while administration and transfer-agent functions will be handled by Bank of New York Mellon. Notably, there is also a voluntary commitment to direct all fees toward marketing and product development during the first year, although this obligation is not legally binding.
The market did not keep it waiting. In 24 hours, ZEC rose by 34%, marking the best performance among the top-100 cryptocurrencies by market capitalization. On Saturday, the token broke through the $800 level for the first time since January 2018, reaching an intraday peak of $857, followed by a correction to $784.
This breakout is especially telling against the backdrop of the June crash, when Zcash lost about half of its value due to a vulnerability discovered in one of the network's protected pools. The current recovery suggests that investors are willing to overlook past issues, focusing on institutional recognition.
My view: ZEC's movement is a classic example of "buying the rumor." If the SEC approves the application, we could see further growth, but it should not be forgotten that the asset is still very far from its all-time high of $3191, recorded in 2016. Volatility will remain high, so positions should be built with potential sharp pullbacks in mind.