Grayscale Files for Biweekly Payout Zcash Options Income ETF

Grayscale Investments is expanding its Zcash offerings with a new fund that would distribute income to shareholders every two weeks. The proposed ZCSH High Income ETF, submitted to the U.S. Securities and Exchange Commission (SEC), would not hold Zcash directly. Instead, it would generate returns by trading options tied to Grayscale's existing spot Zcash fund.

The filing arrives just 16 days after Grayscale proposed a leveraged 2x Zcash ETF on September 9, and less than three weeks after options on its spot ZCSH fund began trading. The rapid sequence of product launches underscores how quickly Grayscale is building out a suite of Zcash-linked investment vehicles.

The proposed fund would use a synthetic covered call strategy to track the underlying fund's price. It would buy calls and sell puts on ZCSH, then sell call options with terms generally lasting a month or less. The premiums collected from those option sales would fund shareholder distributions.