Winklevoss group proposes Zcash ETF with 0.25% fee

The Winklevoss group has taken a significant step toward launching a spot Zcash (ZEC) exchange-traded fund (ETF) with a proposed 0.25% fee. The filing with the U.S. Securities and Exchange Commission (SEC) outlines plans for an ETF that would directly hold ZEC, use Gemini as custodian, and list on Nasdaq under the ticker WINK.

The proposed ETF is sponsored by Winklevoss Asset Services, a newly formed entity wholly owned by Winklevoss Asset Services Holdings. The fund has partnered with Cypherpunk Technologies to assist with protocol development and other matters related to the Zcash ecosystem. Additionally, Winklevoss Capital Fund has expressed nonbinding interest in purchasing up to $100 million of shares.

This move comes 13 years after the Winklevoss twins first filed for a spot Bitcoin ETF, which was rejected by the SEC in 2017 due to concerns over BTC price manipulation. The Winklevosses have a long history with Zcash, including Gemini becoming the first licensed exchange to offer ZEC trading and custody. Winklevoss-backed entities have also accumulated significant ZEC holdings, including a $29 million purchase by Cypherpunk, and donated $1.2 million worth of ZEC to Shielded Labs.

The filing positions the Winklevoss group to challenge Grayscale's existing Zcash ETF (ZCSH), which launched in August and has already attracted over $233 million in inflows, reaching nearly $890 million in net assets. Bitwise has also filed for a Zcash ETF, indicating growing competition in the space.