On November 26, 2025, Grayscale Investments took a landmark step by filing an S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Zcash Trust into a spot exchange-traded fund (ETF). If approved, this product, trading under the ticker symbol ZCSH on the NYSE Arca, would make history as the first U.S. spot ETF for a privacy-focused cryptocurrency.
The Blueprint for the Zcash ETF
Grayscale’s filing outlines a structured and regulated pathway for investors to gain exposure to Zcash (ZEC). The proposed ETF is designed to track the performance of ZEC’s price, using the CoinDesk Zcash Price Index (ZCX) as its benchmark. To ensure security and operational integrity, the fund has appointed major financial players to key roles: Coinbase Custody will safeguard the underlying ZEC assets, Coinbase will act as the prime broker, and The Bank of New York Mellon will handle administration and transfer agency services.
The Grayscale Zcash Trust is not starting from scratch; it comes with a substantial foundation. As of November 25, 2025, the trust held approximately 394,400 ZEC, with an asset value of around $199 million. The proposed fund would carry an annual sponsor fee of 2.5%. The filing specifies that creations and redemptions will initially be conducted in cash, with the potential for in-kind (physical) transactions pending further regulatory approvals.
A Watershed Moment for Privacy Coins
This filing is significant because it represents a bold move to bring a privacy coin into the mainstream, regulated world of Wall Street. For years, privacy-focused cryptocurrencies have faced heightened regulatory scrutiny and have often been sidelined by major institutions. Grayscale’s action signals a growing confidence that privacy and compliance can coexist. The company stated that “as privacy becomes foundational across crypto, we view ZEC as a key contributor to a well-balanced digital asset portfolio”.
Zcash’s unique architecture, which offers users the option of transparent or shielded (private) transactions, is central to this argument. This selective disclosure feature provides a potential path for compliance, differentiating it from coins with mandatory privacy and potentially making it more palatable to regulators.
Fueling a Meteoric Rise
The ETF proposal arrives amidst a spectacular rally for Zcash. In the three months leading up to the filing, the price of ZEC had surged by over 1,000%. This growth has been fueled by a confluence of factors, including a renewed focus on digital privacy, Zcash’s recent technological upgrades, and a wave of institutional interest.
This institutional demand is evident. Beyond Grayscale’s trust, the Winklevoss twins’ Cypherpunk Technologies has deployed over $50 million into ZEC, aiming to acquire 5% of its total supply. Furthermore, the Nasdaq-listed company Reliance Global Group recently announced it had consolidated its entire digital asset treasury into Zcash, fully exiting its positions in Bitcoin, Ethereum, and other major cryptocurrencies.
While the SEC’s approval is not guaranteed and the review timeline could range from months to a year, Grayscale’s filing has undeniably opened a new chapter in the conversation about privacy, regulation, and the future of digital assets.
