Grayscale Sees Zcash as Potential Rival to Bitcoin

Grayscale Investments has listed its first-ever spot Zcash ETF on NYSE Arca, the world's first exchange-traded fund tracking spot ZEC. The move is seen as laying the groundwork for broader adoption of the investment product.

The U.S. asset manager argues that privacy-focused cryptocurrency Zcash (ZEC) could potentially rival Bitcoin's network effects due to its late-mover advantages, including financial privacy features and active development addressing quantum computing threats.

Grayscale estimates that if ZEC reaches 2% of Bitcoin's market cap within five years, its price would equate to $1,622; at 10%, the figure would be $8,109. The firm used its proprietary 'Crypto Sectors' classification framework to illustrate Bitcoin's dominant position in the currency segment.

However, a critical vulnerability was discovered in Zcash's shielded transaction pool in June and contained through an upgrade. Regulatory scrutiny is also a concern due to Zcash's highly anonymous transactions.