Grayscale Thinks Zcash Can Challenge Bitcoin's Dominance
Grayscale has launched a US spot Zcash ETF, and in a research note to investors, the company's Head of Research Zach Pandl said that Zcash can challenge Bitcoin's dominance due to its second mover advantages.
Pandl pointed out that Zcash benefits from features that were not possible or less relevant when Bitcoin first took off. These include financial privacy features retrofitted into the network, which are essential in an era of AI-powered surveillance.
Grayscale also highlighted Zcash's active development in the face of rising cybersecurity and quantum risks. The company noted that over the last year, Zcash has undergone at least three major upgrades, including the latest Ironwood upgrade that retired Orchard as the active private pool.
Zcash's cross-chain reach is another advantage, according to Grayscale. Unlike Bitcoin, which requires widespread merchant adoption, users can use Zcash as a private asset hub with universal connectivity.
The launch of the US spot Zcash ETF has contributed to the price surge of ZEC, which has risen 20x over the last year. However, Grayscale warned that there will be intense volatility in the path to higher market valuations, and that ZEC's price appreciation will not be a 'straight line.'