Grayscale has officially submitted an S-3 registration statement to the U.S. Securities and Exchange Commission, taking its next major step toward converting the Grayscale Zcash Trust into a fully regulated spot Zcash ETF. The filing marks a significant development for privacy-focused cryptocurrencies aiming for broader acceptance in traditional financial markets.
According to the newly submitted documents, the proposed ETF will hold real Zcash and reflect the asset’s price using the CoinDesk Zcash Price Index. The filing also includes a 19b-4 rule change request, which would allow the ETF to list and trade on NYSE Arca if the SEC grants approval.
This move aligns with Grayscale’s recent momentum on Wall Street. Two additional Grayscale ETFs have already been approved for listing on the NYSE, strengthening expectations that Zcash could be next. Because Grayscale qualifies for the simplified S-3 process—thanks to its size, reporting history, and previous trust-to-ETF conversions—the transition is far more efficient than standard ETF registrations.
Grayscale has already converted its Bitcoin and Ethereum trusts into spot ETFs in 2024, creating a clear regulatory path for Zcash. The Zcash Trust currently holds around $150 million in ZEC, which would be transferred into the new ETF structure if approval is granted.
The planned Zcash ETF would allow in-kind creations and redemptions using baskets of ZEC, following the same model as most U.S. spot crypto ETFs. The proposed fund includes a 2.5% annual sponsor fee and would be available across multiple regions once listed on a major exchange.
Growing demand is also supporting the timing of Grayscale’s move. Zcash has been gaining strong market momentum, especially after the Reliance Group revealed it had shifted its entire crypto portfolio into ZEC. The token’s price recently reached $505, placing ZEC among the top 15 cryptocurrencies by market capitalization.
However, the filing also highlights risks associated with Zcash’s privacy-enhanced design. ZEC uses zero-knowledge proofs to keep transaction details confidential, prompting additional scrutiny from regulators. The document also warns that Zcash can experience sharp price swings, as relatively small trades can move the asset more dramatically than larger, more liquid cryptocurrencies.
Grayscale’s latest filing underscores a broader shift within the crypto ETF landscape—one where privacy-focused digital assets are beginning to push toward mainstream, regulated investment structures.
