Zcash Shatters $800 Ceiling for First Time Since 2018 Amid Grayscale ETF Push

Zcash, a privacy-focused cryptocurrency that shares Bitcoin's 21 million supply cap and proof-of-work mining model, has surged past $800 for the first time since January 2018. The token rose by as much as 48% in a single day, reaching a peak of $851, after trading as low as $589 within the same 24-hour window.

The rally was driven by Grayscale's efforts to convert its Zcash Trust into a spot exchange-traded fund. The asset manager filed its fourth amended registration statement with the U.S. Securities and Exchange Commission on August 18, followed by a Form 8-K on August 21 that set August 25 as the anticipated listing date on NYSE Arca under the ticker ZCSH.

The proposed ETF would move shares from the OTCQX marketplace to a national exchange and introduce a creation and redemption mechanism designed to minimize discrepancies between share prices and underlying asset values. Grayscale's Zcash Trust, launched in 2017, held more than $260 million in assets under management as of Friday.

The contribution of approximately 200,000 ZEC by DCG International Investments, another subsidiary of Digital Currency Group, could influence perceptions of how much ZEC remains readily available for trading. The structure has drawn attention because the sponsor converting the trust into an ETF and the entity proposing to help fill it with coins trace back to the same corporate parent.

Derivatives activity has amplified the move considerably, with futures volume reaching approximately $4.55 billion on Friday, dwarfing spot trading of roughly $553 million. Open interest stood near $1.35 billion.