Grayscale has submitted its fifth amendment to the U.S. Securities and Exchange Commission (SEC) for a Zcash (ZEC) exchange-traded fund (ETF), seeking approval for a product that would mark the first U.S. spot ETF directly tracking the privacy-focused cryptocurrency. The proposed ETF, to be renamed “The Zcash ETF,” would list on NYSE Arca under the ticker ZCH, with a 2.5% annual sponsor fee and custodianship by Coinbase Custody Trust Company.
The move follows Grayscale’s management of its Zcash Trust, which holds over $260 million in assets under management as of Friday. The firm has sought to restructure the trust into an ETF, a process that has involved multiple iterations with regulators. If approved, the ETF would offer investors direct exposure to Zcash, which ranks as the 12th largest cryptocurrency by market capitalisation.
Grayscale’s filing outlines plans to issue shares continuously for public sale, though the exact number of shares remains undetermined. The firm has also engaged in discussions with a subsidiary of Digital Currency Group, which could contribute approximately 200,000 ZEC to the fund, though this remains unconfirmed.
Bloomberg Intelligence analyst James Seyffart noted the amendment suggests Grayscale is “getting closer and closer to converting this thing into an ETF,” reflecting ongoing regulatory engagement. The SEC’s approval, however, remains pending, with no timeline for a decision provided in the filing.
The proposed ETF’s structure, including the role of the Bank of New York Mellon as transfer agent, underscores the involvement of traditional financial institutions in crypto products. Grayscale, which oversees more than a dozen crypto ETFs, has positioned itself as a key player in expanding institutional access to digital assets.
Written by Oliver Grant
Markets Desk
