Zcash Trust Seeks Listing on NYSE Arca via Grayscale Deal

Grayscale has filed an amendment to its registration statement for the Zcash Trust, which would move the fund onto NYSE Arca. As part of the filing, the company disclosed discussions with DCG International Investments Ltd., a subsidiary of Digital Currency Group (DCG), over a contribution of roughly 200,000 ZEC to the trust.

The talks aim to have DCG's unit acquire shares through an authorized participant in exchange for the tokens. However, since these discussions are not binding agreements or commitments to purchase, the Potential Investor could decide to buy more, fewer, or no Shares.

Grayscale's parent company would take a controlling position if the contribution is completed, giving DCG the ability to control the outcome of virtually all matters presented to shareholders for approval. This has raised concerns that DCG could prioritize its own interests over those of the Trust, given its involvement in ZEC mining through Fortitude Mining and Foundry Digital.

The trust intends to list under the ticker ZCSH, which already carries its shares on OTCQX. As of June 30, the net asset value was $155.2 million, with shares holding about 2.3% of circulating ZEC. The trust has been quoted at a discount on 700 days, with a maximum discount of 55% and a maximum premium of 240%, though the SEC has not approved or disapproved the shares.