Winklevoss Launches 10x Cheaper Zcash ETF Rival

Grayscale’s Zcash ETF, ZCSH, has seen a significant drop in assets, losing $218 million in under two weeks. On September 24, the fund held $1 billion, but by October 5, that figure had fallen to $781.96 million. The decline was driven by withdrawals totaling around $97 million and a decrease in the price of Zcash (ZEC).

Investors pulled money out of the fund in four of its last five sessions, with daily outflows ranging from $27 million to $30 million between September 30 and October 2. This marks the first weekly outflow since the fund’s launch. Despite this, the price of ZEC has risen 4.8% in 24 hours, sitting near $1,342.

In response to Grayscale’s struggles, Winklevoss Asset Services has filed for a rival Zcash ETF, proposing a fee of 0.25% annually, which is one-tenth of Grayscale’s fee. For a $10,000 holding, the Winklevoss fund would cost $25 a year, compared to $250 for ZCSH. The proposed ETF would be listed on Nasdaq with the ticker WINK.

The filing names Gemini Trust, founded by Cameron and Tyler Winklevoss, as the custodian for the fund’s ZEC holdings. The document also notes that Gemini is an affiliate of the sponsor and lists this relationship as a conflict of interest. Winklevoss Capital Fund has expressed interest in buying up to $100 million of shares, though this interest is not binding. The sponsor, formed on October 1, has no prior experience running a pooled investment fund.

The WINK ETF cannot trade until the SEC declares the registration effective, and Nasdaq must separately clear the listing. The filing still leaves key details such as the price benchmark, seed amount, and trading partners blank.