- Grayscale Zcash Trust (ZEC) filed an S-3 registration statement with the U.S. SEC.
- The trust plans to rename itself as the Grayscale Zcash Trust ETF.
- The ETF shares are intended to trade on NYSE Arca under the ticker ZCSH.
- The trust’s investment objective is to track the value of ZEC, less expenses and liabilities.
- Coinbase Custody Trust Company will act as custodian, while BNY Mellon will serve as transfer agent and administrator.
- The filing states the trust currently supports cash-based creations and redemptions for share baskets.
Grayscale Seeks SEC Approval for Zcash ETF
Grayscale Zcash Trust (ZEC) filed a registration statement on Form S-3 with the U.S. Securities and Exchange Commission to register shares linked to Zcash (ZEC). According to the filing, the trust intends to list its shares on NYSE Arca under the ticker symbol “ZCSH.”
The filing states that, in connection with the effectiveness of the registration statement and the planned exchange listing, the sponsor intends to rename the trust as the “Grayscale Zcash Trust ETF.” The trust was formed as a Delaware statutory trust in October 2017. Its stated purpose is to hold ZEC, the native digital asset of the Zcash Network. The filing describes the investment objective as reflecting the value of ZEC held by the trust, based on the index price, minus expenses and liabilities.
Trust Structure and Operations Detailed in Filing
The filing states that the trust intends to issue shares on a continuous basis and register an indeterminate number of shares. Shares may only be purchased from the trust in blocks of 10,000 shares, referred to as “Baskets.” According to the prospectus, the trust currently supports cash orders for creations and redemptions through authorized participants and liquidity providers. The filing notes that the trust is not currently able to create or redeem shares through in-kind transactions.
The filing identifies Grayscale Investments Sponsors, LLC as the sponsor of the trust. Coinbase Custody Trust Company, LLC is listed as custodian, Coinbase, Inc. as prime broker, and The Bank of New York Mellon as transfer agent and administrator. The prospectus also states that the sponsor fee is calculated at an annual rate of 2.50% of the trust’s NAV fee basis amount.
Zcash Network and Risk Disclosures Included
The filing describes Zcash as a digital asset network that includes selective privacy-preserving features using zk-SNARK cryptographic protocols. The prospectus states that shielded transactions on the Zcash Network can protect transaction amounts and participant information, while unshielded transactions remain publicly viewable.
The registration statement includes multiple risk disclosures related to market volatility, third-party service providers, taxation, liquidity, and regulatory treatment. The filing also states that the trust is considered an “emerging growth company” and will be subject to reduced reporting requirements. The SEC filing states that neither the SEC nor any state securities commission has approved or disapproved of the securities described in the prospectus.
Grayscale filed a Form S-1 registration statement with the U.S. SEC on March 20 for a proposed HYPE ETF tied to the Hyperliquid network’s native asset. The filing marks an early-stage effort to expand crypto investment products beyond major cryptocurrencies, though the proposal remains subject to SEC review and approval.
Zcash Market Reaction
Zcash (ZEC) delivered one of the strongest performances in the crypto market over the past week, with ZEC surging approximately 60–80%+ from early May levels. The token climbed from around $350–$420 at the start of the week to intraday highs above $600–$637, briefly pushing its market capitalization close to or above the $10 billion mark.
Trading volumes spiked sharply, with daily figures frequently surpassing $1 billion and peaking near $1.47 billion on May 6, as momentum traders, short liquidations, and renewed institutional interest fueled the rally. Analysts attributed the move to a combination of technical breakouts, including clearing key resistance zones between $400 and $550, along with broader crypto market strength and growing optimism surrounding Zcash’s privacy-focused ecosystem. Market observers also highlighted increasing adoption of shielded transactions, which now account for a significant portion of the circulating supply, alongside ongoing network upgrades aimed at improving scalability, security, and privacy features across the Zcash network.
FAQs
1. What is the Grayscale Zcash Trust ETF?
The Grayscale Zcash Trust ETF is a proposed exchange-traded fund designed to track the value of Zcash (ZEC), based on the trust’s holdings of the cryptocurrency.
2. What is the proposed ticker symbol for the Grayscale Zcash ETF?
The SEC filing states that the ETF is expected to trade on NYSE Arca under the ticker symbol “ZCSH.”
3. What is the sponsor fee for the proposed ETF?
The prospectus states that the sponsor fee is calculated at an annual rate of 2.50% of the trust’s NAV fee basis amount.
4. Who serves as the administrator and transfer agent for the trust?
The Bank of New York Mellon is listed in the filing as the administrator and transfer agent for the trust.
