Grayscale has taken a major step toward launching one of the first exchange-traded funds tied to a privacy-focused cryptocurrency. The firm filed a Form S-3 with the U.S. Securities and Exchange Commission on Wednesday, outlining its plan to convert the existing Grayscale Zcash Trust into a spot Zcash ETF. If approved, the fund would be listed on NYSE Arca.
The proposed Zcash ETF follows Grayscale’s broader expansion into spot crypto ETFs. The asset manager has already introduced spot funds tracking Bitcoin, Ether, Dogecoin, and XRP. The simplified filing format may streamline the approval process and position the Zcash ETF alongside its other products.
Zcash has seen sharp price momentum in recent months. Data from Nansen shows that ZEC has gained more than 50% over the last 30 days and over 1,000% in the past year, reaching above $519 at the time of publication.
Since the SEC first approved spot Bitcoin ETFs in January 2024, a growing number of asset managers — including Grayscale, Bitwise, and BlackRock — have expanded into new crypto-linked investment vehicles. Grayscale also launched the first spot Dogecoin ETF this week, recording $1.4 million in trading volume on its opening day.
Interest in Zcash appears to be increasing beyond traditional crypto investors. Earlier this month, Leap Therapeutics announced it would use a $50 million investment from Winklevoss Capital to acquire ZEC as part of its corporate treasury strategy. ETF analyst Eric Balchunas suggested that Zcash’s rising profile could draw attention away from Bitcoin, though many in the community questioned that view.
