Overview
- Grayscale converted its long‑running Zcash Trust into the Zcash ETF (ticker ZCSH) and began trading on NYSE Arca on Aug. 25, with the fund holding roughly 387,000–393,000 ZEC worth about $300 million at launch.
- The fund names Coinbase Custody as custodian, uses a cash‑create/cash‑redeem model for share creation and redemption, and charges a 2.5% annual sponsor fee.
- Grayscale has pledged to direct 100% of the first year’s collected fees to Zcash awareness efforts, but that commitment is voluntary and does not alter the fee paid by investors.
- The launch follows a May disclosure of a four‑year Orchard shielded‑pool vulnerability that could have allowed undetectable counterfeit ZEC, a patch and the Ironwood upgrade were deployed but the network’s privacy design prevents cryptographic proof the flaw was never exploited.
- Filings reveal non‑binding talks with a Digital Currency Group affiliate to contribute about 200,000 ZEC, a potential transfer that could change circulating supply, concentrate holdings, and affect liquidity and arbitrage mechanics as the ETF operates.