Grayscale Lists Zcash ETF Despite Recent Security Flaw

Grayscale's Zcash Exchange Traded Fund (ETF) began trading on NYSE Arca under the ticker ZCSH, allowing investors to track the price of ZEC through brokerage accounts without directly owning or storing the token.

The ETF is based on a nine-year-old investment product that was converted from the Grayscale Zcash Trust in November. Grayscale Head of Index Steve Vanourny stated that the fund's long history and investor demand for assets beyond Bitcoin and Ethereum made this the right time to list it.

Vanourny highlighted Zcash's maturity, privacy features, and fixed supply as key factors in its appeal to self-directed and advised investors. He emphasized that the ETF offers a distinct thesis of 'Bitcoin-like scarcity and proof-of-work economics plus optional privacy' for investors who prioritize privacy.

The launch follows a critical security flaw discovered in Zcash's shielded transaction system, which was patched with the Ironwood upgrade in July. Vanourny stated that Grayscale will monitor Zcash's progress by its adoption, utility, and network security rather than its price.