Grayscale Files for Zcash Income ETF with Biweekly Distributions

Grayscale has filed paperwork with the US Securities and Exchange Commission (SEC) for The ZCSH High Income ETF, an exchange-traded fund designed to generate recurring cash distributions tied to Zcash without holding the privacy-focused cryptocurrency itself.

The proposed product's stated goal is to deliver current income while still offering some potential for price appreciation. It would do so by trading options on Zcash exchange-traded products, most notably Grayscale's existing spot vehicle that trades under the ticker ZCSH.

Under the strategy outlined in the filing, the new ETF would generally obtain synthetic exposure by purchasing call options and selling put options on the reference Zcash product. It would then sell additional short-dated call options, typically with expirations of one month or less, and use the premiums collected from those sales to support distributions.

The income fund would sit in the same family as Grayscale's existing spot ETF and could increase trading activity in the spot product, according to the filing. The registration statement has not yet become effective, with typical timing pointing toward possible effectiveness around early December 2026.