Zcash’s native token, ZEC, rose over 22% in 24 hours to $818.77 as of Saturday, marking its highest price since 2018. The surge followed a week of gains and Grayscale’s submission of a fifth amended registration statement, which could pave the way for the first U.S. exchange-traded fund (ETF) to directly track ZEC’s price.
Grayscale’s Zcash Trust, which holds a significant portion of the cryptocurrency, is seeking to convert into an ETF, a move that could enhance liquidity and institutional adoption. The proposed fund would charge a 2.5% annual sponsor fee, according to filings.
ZEC’s market capitalisation stands at $13.8 billion, ranking it the 12th-largest cryptocurrency by value. Futures trading volume for ZEC reached $9.5 billion in 24 hours, compared to $1.06 billion on spot exchanges, reflecting growing interest in derivative products.
Digital Currency Group (DCG), Grayscale’s parent company, is reportedly considering acquiring 200,000 ZEC, valued at $164 million at current prices, though the proposal remains nonbinding and subject to change.
ZEC had faced a 60% selloff in June after a vulnerability disclosure, but has since recovered 35% from its low. However, it remains 75% below its all-time high of $3,191.93, set in 2018.
The success of Grayscale’s ETF conversion hinges on regulatory approval, which is not guaranteed. Analysts note that the outcome could influence broader sentiment toward crypto-ETFs in the U.S. market.
Written by Oliver Grant
Markets Desk
