Grayscale Files to Convert Zcash Trust Into First Spot Privacy Coin ETF

Grayscale Investments submitted a filing to the U.S. Securities and Exchange Commission earlier in May to convert its existing Zcash Trust into a spot exchange-traded fund, which would create the first publicly traded spot ETF for a privacy coin if approved. The proposed fund would provide institutional and retail investors regulated exposure to Zcash, the longest-running privacy-focused cryptocurrency.

Zcash has attracted renewed institutional attention in recent months, with ZEC prices briefly approaching $600 in May amid increased trading volumes and shielded transaction activity. Crypto hedge fund Multicoin Capital disclosed it had accumulated a significant Zcash position beginning in February. Approval of the spot ETF would allow institutional allocators to gain exposure to Zcash without direct token custody or reliance on offshore trading venues.