Winklevoss Twins Target Grayscale with Low-Fee Zcash ETF

The Winklevoss twins are challenging Grayscale’s dominance in the Zcash ETF market with a new low-cost offering. Winklevoss Asset Services filed a preliminary registration statement with the SEC on Monday for a spot Zcash ETF, proposing a fee of just 0.25%, 90% lower than Grayscale’s 2.5% fee for its existing product, ZCSH.

The proposed Winklevoss Zcash ETF, which would trade under the ticker WINK on Nasdaq, would hold ZEC in segregated cold storage, with Gemini Trust Company serving as custodian. The filing indicates Winklevoss Capital Fund’s interest in purchasing up to $100 million of shares, though this is not a binding commitment.

Grayscale’s Zcash ETF has seen significant success since its launch in late August, attracting over $233 million in inflows in its first month. However, it recently experienced its first negative week, with $93.56 million in withdrawals for the week ending October 2. Meanwhile, Zcash itself has surged over 735% in the past year, reaching a market capitalization of approximately $23 billion.

The Winklevoss ETF filing comes as Zcash undergoes network upgrades, including a proposed tripling of block speed. The filing also highlights risks associated with ZEC, such as extreme volatility and vulnerabilities in privacy coins. The SEC’s approval remains uncertain, particularly due to regulatory scrutiny over Zcash’s privacy features.