Grayscale has filed to convert its Zcash Trust into an exchange-traded spot fund, creating the first potential for regulated exposure to the privacy coin in the US ETF market. If the product is approved and listed, it would give exchange-traded investors access to ZEC without requiring them to directly custody the assets.
The proposed ETF will hold ZEC, the native asset of the Zcash network, and is expected to be listed on NYSE Arca under the symbol “ZCSH.” the Deposit It says the fund will be renamed Grayscale Zcash Trust ETF once the registration becomes effective and shares are listed.
Grayscale brings Zcash into the Spot ETF race
The filing pushes Zcash into a category hitherto dominated by larger, more liquid crypto assets. Bitcoin ETFs Ether ETFs and ETFs have created a model for regulated cryptocurrency exposure, but the Zcash product will test whether that structure can be extended to an asset whose market identity is closely tied to privacy-preserving transactions.
Grayscale’s registration statement describes the product in straightforward terms. “The Fund’s purpose is to hold ‘ZEC’, which are digital assets created and transferred through the operations of the peer-to-peer Zcash network, a decentralized network of computers running cryptographic protocols. The Fund’s investment objective is for the value of shares (on a ZEC per share basis) to reflect the value of ZEC held by the Fund, as determined by reference to the index price, less the Fund’s expenses and other liabilities.”
The filing also confirms that the shares are not directly owned by ZEC. “Although an investment in the shares is not a direct investment in ZEC, the shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ZEC. Grayscale Investments Sponsors, LLC is the fund sponsor.”
The trust is organized as a Delaware state statutory trust. Grayscale Investments Sponsors, LLC is listed as sponsor, CSC Delaware Trust Company as trustee, The Bank of New York Mellon as transfer agent and administrator, and Coinbase, Inc. as lead broker, and Coinbase Custody Trust Company, LLC as trustee.
The trust held approximately 391,104 ZEC at the end of the quarter
The existing Grayscale Zcash Trust already holds a physical ZEC position. At its most recent quarterly filing, the fund reported 391,103.88769118 ZEC as of March 31, 2026, down from 393,522.33134026 ZEC at the end of 2025. Using the stated fair value of the deposit of $254.27 per ZEC, this position was worth about $99.45 million at the end of the quarter, with Coinbase identifying it as Market manager for evaluation purposes.
The registration statement says creations and redemptions will occur in blocks of 10,000 shares, referred to as baskets. As of November 21, 2025, approximately 817.0998 ZEC were required to create one basket of 10,000 shares.
Currently, the registration describes the cash order form. Under this structure, an authorized participant deposits or receives cash, while an external liquidity provider sources or receives ZEC. The Fund is not currently able to process in-kind creations and redemptions with approved participants, although NYSE Arca may later seek approval of this form.
The context of privacy coin comes back to the fore
The filing comes after a notable shift in the regulatory backdrop around Zcash. The Securities and Exchange Commission has concluded its review of Zcash without recommending enforcement actions or other changes, alleviating long-standing concerns about one of the most popular privacy-focused networks in the cryptocurrency market.
Zcash Foundation said: “We are pleased to announce that the SEC has concluded its review and has informed us that it does not intend to recommend any enforcement action or other changes against Zcash Foundation in connection with this matter. This outcome reflects our commitment to transparency and compliance with applicable regulatory requirements. Zcash Foundation remains focused on developing a financial infrastructure that preserves privacy for the public good.”
The SEC’s conclusion does not amount to an ETF endorsement. However, it changes the setting for Grayscale’s attempt to bring a privacy coin product into the shell of a regulated public market.
At press time, ZEC was trading at $551.44.
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