In a groundbreaking move, Grayscale has filed to convert its Zcash Trust into a spot exchange-traded fund (ETF), potentially making it the first of its kind to offer regulated exposure to a privacy coin within the U.S. ETF market. If approved, this innovative product will enable investors to gain exposure to Zcash (ZEC) without the need to manage digital asset custody directly.
The proposed ETF is set to hold ZEC, the native cryptocurrency of the Zcash network, and aims to list on NYSE Arca under the ticker symbol “ZCSH.” According to the filing, the trust will be renamed Grayscale Zcash Trust ETF once it receives the necessary regulatory approvals and is officially listed.
Grayscale Enters the Spot ETF Arena with Zcash
This filing positions Zcash in a category that has largely been dominated by more established cryptocurrencies like Bitcoin and Ethereum. Spot Bitcoin ETFs and spot Ether ETFs have already set a precedent for regulated crypto investment, but a Zcash product will test whether this regulatory framework can be extended to an asset known for its emphasis on privacy-preserving transactions.
Grayscale’s registration statement succinctly outlines the trust’s purpose: “The Trust’s purpose is to hold ‘ZEC’, which are digital assets created and transmitted through the operations of the peer-to-peer Zcash Network, a decentralized network of computers operating on cryptographic protocols. The Trust’s investment objective is for the value of the Shares (based on ZEC per Share) to reflect the value of ZEC held by the Trust, as determined by reference to the Index Price, less the Trust’s expenses and other liabilities.”
Importantly, the filing highlights that shares of the trust do not equate to direct ownership of ZEC. Instead, the Shares are designed to provide a cost-effective and convenient means for investors to gain exposure to ZEC, with Grayscale Investments Sponsors, LLC serving as the trust’s sponsor.
The trust operates as a Delaware statutory trust, with Grayscale Investments Sponsors, LLC listed as the sponsor. Other key players include CSC Delaware Trust Company as trustee, The Bank of New York Mellon as transfer agent and administrator, and Coinbase, Inc. as the prime broker and custodian.
Trust’s ZEC Holdings and Market Value
As of its latest quarterly update, the existing Grayscale Zcash Trust reported holdings of approximately 391,104 ZEC, a slight decrease from previous figures. At the stated fair value of $254.27 per ZEC, this position was valued at around $99.45 million, with Coinbase identified as the main market for valuation purposes.
The registration statement outlines that the creation and redemption process will occur in blocks of 10,000 shares, known as baskets. As of November 21, 2025, it was noted that approximately 817.0998 ZEC were needed to create one basket of 10,000 shares.
Currently, the filing mentions a cash-order model. In this structure, an authorized participant deposits or receives cash, while a third-party liquidity provider manages the sourcing of ZEC. The trust has yet to implement in-kind creations and redemptions with authorized participants, although NYSE Arca may pursue approval for such a model in the future.
Regulatory Landscape for Zcash Shifts
This filing coincides with a pivotal change in the regulatory environment surrounding Zcash. The U.S. Securities and Exchange Commission (SEC) recently concluded its review of the Zcash Foundation, opting against recommending any enforcement action or changes. This development alleviates long-standing concerns regarding one of the crypto market’s most recognized privacy-focused networks.
The Zcash Foundation expressed satisfaction with the SEC’s decision, emphasizing its commitment to transparency and compliance with regulatory requirements. This outcome provides a more favorable backdrop for Grayscale’s initiative to introduce a privacy coin product into a regulated public market.
As of the latest data, ZEC is trading at $551.44, marking a significant moment for both investors and the evolving landscape of cryptocurrency investment options.
