Grayscale has submitted a fourth amendment to its application to convert its Zcash trust into an exchange-traded fund (ETF), while revealing that a subsidiary of its parent company, Digital Currency Group, is reportedly considering acquiring approximately 200,000 ZEC tokens through the trust. The filing outlines technical upgrades to the Zcash network and highlights a decline in trading volumes for the trust’s shares since June.
The proposed acquisition, valued at around $110 million based on current ZEC prices, would be facilitated by DCG International Investments Ltd., a subsidiary of Digital Currency Group. ZEC is currently trading near $555, with a market capitalisation approaching $9.4 billion, according to market data. Trading volumes for the Zcash trust’s shares (ZCSH) have fallen to below $5 million, down from a peak of over $23 million in November 2025, as reported by The Block.
The filing notes that discussions regarding the ZEC acquisition are not binding agreements and could result in the subsidiary purchasing more, fewer, or no shares. The amendment also details upgrades to the Zcash network, including enhancements to its consensus mechanism and privacy features, which may support broader adoption of the cryptocurrency. The proposed ETF would be listed on NYSE Arca, a US-based exchange.
Grayscale’s repeated filings reflect ongoing efforts to transform its Zcash trust into a tradable ETF, a process that has faced regulatory scrutiny in previous attempts. The potential acquisition and technical upgrades underscore the evolving dynamics within the Zcash ecosystem, though the exact terms of the deal remain unconfirmed.
Written by Oliver Grant
Markets Desk
