Grayscale’s Zcash ETF Launches as ZEC Hits Eight-Year High

The first US-listed ETF dedicated to Zcash (ZEC) began trading Tuesday, giving investors direct exposure to the privacy-focused cryptocurrency following SEC approval. Grayscale converted its existing Zcash Trust into the new ZCSH ETF, carrying over $313 million in ZECX assets into the exchange-traded structure.

Grayscale’s Zcash ETF goes live

Grayscale Investments has rolled out the first US-based Zcash ETF (ZCSH) after months of back-and-forth with the SEC. ZCSH began trading on NYSE Arca after Grayscale completed the conversion of its Zcash Trust into an ETF.

ZCSH had $313.5 million in assets under management as of August 24, alongside 4.83 million shares outstanding. Each share represented approximately 0.08018 ZEC.

Officially dubbed The Zcash ETF, the newly minted fund tapped Coinbase Custody for storing its ZEC holdings, with BNY Mellon serving as administrator and transfer agent. According to the prospectus, the fund charges an annual fee of 2.5% paid in ZEC, with Grayscale noting that all management fees will support the development of the Zcash ecosystem.

The ETF also comes with an established investment strategy rather than a completely new operation. Grayscale is leaning on its nine-year operational experience of running the trust and a sizable existing asset base.

“We believe Zcash has a compelling long-term role to play and are proud to make its token accessible through the exchange-traded product structure,” read an official statement from Grayscale. 

ZEC price surges to eight-year high

Amid the buzz surrounding the ZCSH ETF launch, ZEC price has rallied hard, setting an eight-year high of $880. To reach the milestone, ZEC recorded a growth spurt of nearly 70% in a single week, with daily trading volumes topping $1.5 billion.

At press time, ZEC is trading at $811.70 with a market capitalization of $13 billion, making it the 11th-largest cryptocurrency. However, the privacy-focused coin is still 86% below its all-time high of $5941 that it set back in October 2016.

Apart from the Grayscale ETF launch, a string of protocol developments provided additional tailwind for ZEC’s rally. Zcash’s Ironwood upgrade improved transaction privacy and security, with institutional and retail investors turning their gaze to ZEC.

Furthermore, several entities have committed to building infrastructure for ZEC mining. Recently, Cypherpunk launched a Zcash mining operation with 4.2 GSol/s of hashrates, targeting 5% of ZEC supply.