Grayscale Weighs 200,000 ZEC Contribution Amid ZEC Price Surge
Grayscale has disclosed discussions about a possible contribution of approximately 200,000 ZEC to its Zcash Trust. The trust's sponsor, Grayscale Investments Sponsors, is in talks with DCG International Investments Ltd., a subsidiary of Digital Currency Group (DCG). If the deal goes through, it would bring the trust onto NYSE Arca under the ticker ZCSH.
The trust currently holds around 2.3% of circulating ZEC and has a net asset value of $155.2 million as of June 30. The shares have been quoted at a discount for most of this year, with a maximum discount of 55% and a maximum premium of 240%. DCG sits on both sides of the deal, mining ZEC through its subsidiaries Fortitude Mining and Foundry Digital.
The potential contribution is significant, considering ZEC's price has been rising. Over the past 24 hours, ZEC exploded by over 11% to exceed $560. The SEC has not approved or disapproved the shares yet, but Grayscale has run similar conversions before, including its Digital Large Cap Fund and XRP trust.