Grayscale's Zcash ETF Launches on NYSE Arca with 2.5% Sponsor Fee

Grayscale's Zcash ETF (ZCSH) has started trading on NYSE Arca, marking a significant milestone for the cryptocurrency. The fund offers spot exposure to Zcash (ZEC), making it the first exchange-traded product to do so.

The sponsor fee is 2.5% per year, which is relatively high compared to other ETFs in the market. However, this fee comes with the advantage of regulated trading on a major exchange like NYSE Arca.

Grayscale's Zcash fund was launched as a private placement in October 2017 and has since quoted its shares on OTCQX. The registration statement went effective on August 24, and NYSE Arca certified the listing on the same day.

The launch of this ETF is seen as a step towards broader crypto adoption for ZEC. However, investors should be aware that the sponsor fee is higher than usual, which may impact their returns.