Grayscale Launches Zcash ETF Amid Rising Demand for Privacy-Centric Assets

Grayscale has launched the Zcash ETF on NYSE Arca, converting its long-running trust into a tradable product. The new listing marks a pivotal moment for the privacy-focused cryptocurrency, which has been under scrutiny after developers patched a critical vulnerability in its shielded transaction system.

The debut follows months of scrutiny after the emergency patch and July's Ironwood upgrade, which replaced Orchard and added accounting rules to trap any counterfeit coins. Grayscale framed the Zcash ETF as a response to rising demand for privacy-centric digital assets, saying it meets investor interest in such assets and broader digital-asset diversification.

The Zcash ETF began trading Tuesday, listing a nine-year-old investment product that Grayscale first launched as a trust in 2017. The firm set a 2.5% fee, with revenue directed back into the Zcash ecosystem to support development and network growth. According to Steve Vanourny, Grayscale's Head of Index, the maturity of the network and its Bitcoin-derived monetary design made this the right moment to bring the Zcash ETF to market.