Winklevoss Twins File for Spot Zcash ETF With SEC

A spot Zcash (ZEC) exchange-traded fund (ETF) backed by the Winklevoss twins has taken a major step forward by filing a registration statement with the U.S. Securities and Exchange Commission (SEC). The ETF aims to list on Nasdaq under the ticker WINK and will hold ZEC directly to track its price.

The filing reveals that Winklevoss Asset Services will act as the ETF's sponsor, while Gemini Trust Company will custody the fund's ZEC holdings. The annual sponsor fee is set at 0.25%, and the fund will not use leverage or derivatives to achieve its investment objectives. Winklevoss Capital Fund has also expressed interest in purchasing up to $100 million of the ETF's shares, though this indication is non-binding.

If approved, the ETF would provide investors with a traditional brokerage account option to gain exposure to Zcash without the need to buy or store the cryptocurrency directly. Zcash is known for its privacy-focused features, utilizing zero-knowledge proof technology to support shielded transactions that hide transaction amounts and sender-recipient information.

ZEC has seen a remarkable surge, increasing over 735% in the past year. This growth has lifted its market capitalization to approximately $23 billion, making it the 10th-largest cryptocurrency by market value. Grayscale's existing Zcash ETF, ZCSH, is already trading in the U.S., and Grayscale recently announced a 3-for-1 share split for the product.