Grayscale's Zcash ETF Hits NYSE Arca, Offers Spot Exposure to ZEC
Grayscale's Zcash ETF, also known as ZCSH, began trading on NYSE Arca this Tuesday, August 25. This is a significant development in the world of cryptocurrency, making ZCSH the first exchange-traded product to offer spot exposure to Zcash (ZEC). The sponsor fee for this ETF is set at 2.5% per year.
The predecessor to ZCSH launched as a private placement in October 2017 and has been quoted on OTCQX since October 2021. After the registration statement went effective on August 24, NYSE Arca certified the listing, and the fund shed its Grayscale Zcash Trust name.
As of June 30, the net asset value (NAV) discount for shares had narrowed to a 7% discount by August 12 and then further to just 1% by August 20. The trust's holdings at that time totaled approximately 2.3% of the ZEC in circulation.
Grayscale's announcement touts the benefits of investing in Zcash, citing its key features with Bitcoin, such as a 21 million coin supply cap and proof-of-work consensus, along with optional transaction privacy that shields sender, recipient, and amount details.