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Grayscale Files to Convert Zcash Trust Into First U.S. Spot ZEC ETF

The filing sets up an SEC test of Zcash’s zero‑knowledge privacy that could determine access to the U.S. ETF market.

Grayscale moves toward first zcash etf with sec filing
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Grayscale files for Zcash Trust ETF to broaden crypto access

Overview

  • Grayscale submitted a Form S-3 to convert its long-running Zcash Trust into an exchange-traded fund that would list on NYSE Arca under the ticker ZCSH, pending SEC review and related exchange approvals.
  • The proposed fund would track the CoinDesk Zcash Price Index (ZCX) with a 2.5% fee, use Coinbase Custody for storage, designate Coinbase, Inc. as prime broker, and appoint BNY Mellon as transfer agent and administrator.
  • The trust currently manages about $196.8 million in ZEC, with the prospectus indicating cash creations and redemptions initially as in‑kind mechanics may require further approvals.
  • ZEC traded near $500 after the announcement, while derivatives showed a sell‑the‑news pattern with open interest down about 6.24%, trading volume up roughly 20.7%, and long‑to‑short ratios slipping below 1.0.
  • If approved, the ETF would be the first U.S.-listed product offering exposure to a privacy-focused cryptocurrency, a category that faces heightened AML and liquidity scrutiny that could influence the SEC’s decision.