Grayscale Files for Spot Zcash ETF Conversion

Grayscale Investments has filed with the U.S. Securities and Exchange Commission to convert its existing Zcash Trust into a spot exchange-traded fund, a move that could create the first regulated ETF tied directly to a privacy-focused cryptocurrency. The filing, submitted on May 8, proposes listing the product on NYSE Arca under the ticker ZCSH.

The proposed ETF would hold actual Zcash (ZEC) tokens, tracking their spot price via the CoinDesk Zcash Price Index minus fees and liabilities. This structure would allow investors to gain direct exposure to ZEC through traditional brokerage accounts, eliminating reliance on futures contracts or related equities. Coinbase Custody would serve as custodian, with Coinbase Inc. as prime broker and Bank of New York Mellon handling administration. As of March 31, the trust held approximately 391,104 ZEC valued at $99.4 million, down from $200.4 million at the end of the prior year.

The filing arrives amid a shifting regulatory landscape for privacy coins. Federal regulators recently closed an investigation into the Zcash Foundation, launched in August 2023, without recommending enforcement action or changes. This resolution, reported in...