Grayscale To Launch Zcash ETF, Files S-3 to Convert Trust
Grayscale Investments, a prominent digital asset manager, is poised to make a significant impact on the Zcash ecosystem with its latest step. As per reports, the investment giant has filed an S-3 form with the US Securities and Exchange Commission to convert its ZEC Trust into a publicly traded Zcash ETF.
With its robust privacy features and growing adoption, ZEC has become an attractive option for investors seeking to diversify their portfolios. The proposed ZEC fund aims to provide a more accessible and regulated investment vehicle, enabling investors to tap into the growth prospects of this unique privacy-focused token.
Grayscale Seeks SEC Approval of Zcash ETF Launch
Investment giant Grayscale has filed an S-3 form as an initial step towards launching its Zcash ETF. According to the filing, the asset manager intends to convert its ZEC Trust to an exchange-traded fund, which will be renamed as the Grayscale Zcash Trust ETF.
Notably, this Zcash ETF aims to increase accessibility to the ZEC token for a broader range of investors by offering a regulated investment vehicle. By providing a traditional ETF structure that can be traded on stock exchanges, it helps reduce some of the risks associated with direct investment in crypto.
It is worth noting that the move comes on the heels of Grayscale’s recent filings with the SEC for Hedera, Litecoin, and Bitcoin Cash ETFs.
Privacy Tokens Gain Traction, ZEC Leads
Interestingly, Grayscale’s decision to launch a Zcash ETF underscores the growing demand for privacy tokens like ZEC. Over the recent months, the cryptocurrency market has been witnessing a major shift in investor interest, with privacy-focused tokens gaining traction.
Even when the broader crypto space succumbed to the larger crash, privacy tokens like Zcash, DASH, and Monero bucked the trend, exhibiting notable gains. This remarkable growth highlights the growing importance of financial privacy and security in the industry.
Zcash is a crypto token that focuses on user privacy, offering a level of anonymity and security that is not typically found in traditional cryptocurrencies. The ZEC ETF provides investors with a way to invest in this innovative asset class while ensuring regulatory compliance and maintaining the highest standards of investment protocols.
Unveiling the Key Aspects of the Grayscale Zcash ETF
Significantly, the Grayscale Zcash ETF is designed to hold actual ZEC and track the value of the token as measured by the CoinDesk Zcash Price Index. The SEC filing also includes a 19b-4 rule change, which, if approved, would enable the fund to list and trade on NYSE Arca. This development is supported by recent approvals of two other Grayscale ETFs on the NYSE.
The decision to file the S-3 form is based on the company’s plans for the conversion of the trust. Having successfully converted its Bitcoin and Ethereum trust into spot ETFs in 2024, Grayscale has established a regulatory and operational precedent for the ZEC fund.
Zcash Token Price Exhibits Bullish Signals
In response to this significant development, the ZEC token is exhibiting a notable positive trend, despite its recent downfall. Currently trading at $503.13, the privacy-based altcoin is up by a marginal 0.5% in a day.
Although ZEC is down by nearly 20% on a weekly basis, it has seen an impressive uptick of 40% over the past 30 days. This high volatility highlights the unpredictable nature of crypto.
