Grayscale Files for Zcash Income Fund Amid $1 Billion ETF Assets

Grayscale has filed for a Zcash ETF that would seek income from options linked to Zcash exchange-traded products. The proposed fund, called the ZCSH High Income ETF, would target shareholder distributions every two weeks and use options referencing products such as Grayscale's existing Zcash fund.

The strategy would be actively managed, combining current income with potential for capital appreciation. Under normal conditions, the fund would invest mainly in options tied to Zcash exchange-traded products, setting an 80% threshold using the options' notional values.

Grayscale expects income-generating calls to expire in one month or less, generally. The filing describes this combination as a synthetic covered call strategy.