Grayscale Advances Spot Zcash ETF Plans with Updated SEC Filing

Grayscale Investments has submitted an amended Form S-3 registration statement to the SEC, advancing its plans for a spot Zcash ETF. The proposed product would be the first US exchange-traded fund focused on Zcash (ZEC), allowing traditional investors direct exposure to this privacy-oriented cryptocurrency without needing to manage private keys or navigate exchanges directly.

The Grayscale Zcash Trust, launched in 2017 and holding over $260 million in assets under management, would convert into a continuously offered ETF. Shares would trade on NYSE Arca under the symbol ZCSH, with The Bank of New York Mellon serving as transfer agent and administrator, Coinbase Custody Trust Company as custodian, and Coinbase, Inc. as prime broker.

The trust's objective is to track the price of underlying ZEC, minus expenses, measured against an index like the CoinDesk Zcash Benchmark Rate. Creations would occur primarily through cash orders in baskets of 10,000 shares, with in-kind creations available but not currently permitted for redemptions.

Grayscale has indicated plans to allocate the sponsor fee received in the first year toward marketing and support for the Zcash network, which emphasizes optional privacy features through zero-knowledge proofs. The company is also in non-binding discussions with DCG International Investments Ltd. about a potential contribution of approximately 200,000 ZEC in exchange for shares after registration becomes effective.