Grayscale Investments has filed plans to convert its Zcash Trust into a spot exchange-traded fund (ETF), representing a significant milestone for regulated exposure to a privacy-focused cryptocurrency in the U.S. ETF market. If the application is approved, this would enable investors to gain direct exposure to ZEC, the native currency of the Zcash network, without needing to manage the asset directly.
The proposed ETF will primarily hold ZEC and is expected to be listed on NYSE Arca with the ticker symbol “ZCSH.” According to the official filing, the trust will be renamed the Grayscale Zcash Trust ETF upon registration and listing.
Exploring Zcash’s Entry into the Spot ETF Market
This filing places Zcash in a competitive arena traditionally dominated by larger assets like bitcoin and Ethereum. While Bitcoin and Ether ETFs have established a model for regulated cryptocurrency access, a Zcash ETF would challenge this framework, potentially paving the way for other privacy-centric digital assets.
Grayscale’s registration statement outlines the fundamental aspects of the product. It specifies that “The Trust’s purpose is to hold ‘ZEC,’ which are digital assets created and transmitted through the operations of the peer-to-peer Zcash Network, leveraging cryptographic protocols. The Trust aims for the value of its shares to mirror the value of ZEC held, accounting for expenses and other liabilities.”
It is essential to note that investing in the ETF shares does not equate to holding ZEC directly. “While investing in shares does not constitute a direct ZEC investment, they are crafted to offer a cost-effective and straightforward way to gain exposure to ZEC,” the statement clarifies. Grayscale Investments Sponsors, LLC is named as the entity overseeing the trust.
The trust operates as a Delaware statutory trust, with key players including CSC Delaware Trust Company as trustee, The Bank of New York Mellon as transfer agent and administrator, Coinbase, Inc. as the prime broker, and Coinbase Custody Trust Company, LLC as custodian.
Current Holdings of the Zcash Trust
As per its latest quarterly results, the existing Grayscale Zcash Trust has reported holding a significant amount of ZEC. The trust had approximately 391,104 ZEC as of March 31, 2026, down from approximately 393,522 ZEC at the end of 2025. Using the last quoted fair value of $254.27 per ZEC, this holding was valued around $99.45 million, with Coinbase being identified as the primary valuation market.
The registration statement also outlines that creations and redemptions of shares will occur in blocks of 10,000 shares, known as “baskets.” As of November 21, 2025, about 817.0998 ZEC would be necessary to create a single basket.
For the moment, the filing indicates a cash-order model. In this system, authorized participants either deposit or acquire cash while a designated liquidity provider manages the ZEC. Currently, the trust cannot facilitate in-kind creations and redemptions with its authorized participants, though the NYSE Arca may pursue actions for this model in the future.
Contextualizing Privacy Coins in Today’s Market
This filing comes amidst evolving regulatory attitudes toward Zcash. The SEC recently finished reviewing the Zcash Foundation and did not recommend any enforcement actions, alleviating long-standing uncertainties regarding the privacy-focused network.
The Zcash Foundation expressed optimism, stating: “We are pleased to announce that the SEC has concluded its review and has no intention of recommending any enforcement action regarding the Zcash Foundation. This reflects our dedication to transparency and adherence to regulatory requirements. We continue to strive for advancements in privacy-preserving financial infrastructure for public benefit.”
While the SEC’s decision does not equate to ETF approval, it does enhance the landscape for Grayscale’s initiative to introduce a privacy-focused product into the regulated market.
As of the latest update, ZEC is trading at approximately $551.44.
