Grayscale Files for Zcash Income ETF with Biweekly Payouts

Grayscale has filed for a new zcash income ETF that would use options to pursue biweekly payouts. The proposed fund, called ZCSH High Income ETF, intends to make distributions every two weeks and offer indirect exposure to ZEC.

The income strategy involves buying call options and selling put options linked to a zcash ETF. This approach is designed to approximate the ETF's price movements without holding its shares. Selling call options can limit gains above the strike price, but the fund would retain exposure to losses if the referenced asset declines.

Grayscale plans to use options tied to exchange-traded zcash products and has selected strike prices based on market conditions. The payout plan does not set a fixed yield, and the amount and character of distributions would vary. Investors could receive payments while capturing less of a sharp increase in ZCSH's share price.

The proposed income fund is separate from Grayscale's existing zcash ETF, which trades under the ticker ZCSH and holds ZEC. The new fund would create another way to gain exposure to the market with a different return profile.