Grayscale Unveils Income-Focused Zcash ETF with Options Strategy

Grayscale has filed with the SEC to introduce a new ETF that aims to earn income from option contracts on Zcash exchange-traded products. The fund, called the ZCSH High Income ETF, will not hold any Zcash (ZEC) but instead get its exposure to Zcash through options. At least 80% of the fund's net assets will be allocated to options on Zcash exchange-traded products.

The strategy involves buying call options and selling put options, with maturities of one month or less. This will enable the fund to earn premiums from its options sales, which in turn will form the basis of the biweekly distributions to shareholders.

While the ETF is named Grayscale Zcash ETF High Income, the returns or distribution amounts are not guaranteed for any particular investor. In some cases, distributions may partly consist of a return of capital rather than profits earned from the strategy.