Winklevoss Twins File for Spot Zcash ETF Under Ticker WINK
The Winklevoss twins, Cameron and Tyler, have filed an S-1 with the SEC to launch a spot Zcash exchange-traded fund (ETF). The proposed ETF, which would trade on Nasdaq under the ticker "WINK," would hold ZEC directly and aim to track its price, offering investors exposure through traditional brokerage accounts.
Winklevoss Capital Fund has expressed non-binding interest in purchasing up to $100 million of shares in the offering. Additionally, Cypherpunk Technologies, a Winklevoss-backed company, will serve as the "Zcash Ecosystem Partner" to advise on protocol matters and coinholder voting. Gemini, the twins' crypto exchange, will act as the custodian, holding the trust's ZEC in cold storage.
The filing comes amid a resurgence of Zcash, a privacy coin that allows users to shield transaction details using zk-SNARKs cryptography. This year, ZEC has gained significant traction, driven by concerns over financial surveillance and institutional interest. Grayscale recently converted its Zcash Trust into a spot ETF, and 21Shares listed Europe's first Zcash exchange-traded product.
The filing acknowledges the risks, including ZEC's extreme volatility and the unique vulnerabilities of privacy coins. It specifically mentions a soundness bug found earlier this year in Zcash's Orchard shielded pool, which temporarily caused ZEC to drop roughly 50% before being patched with the Ironwood upgrade. The SEC must still approve the filing before trading can commence.