Grayscale Files to Convert Zcash Trust into Spot ETF Amid Rising Investor Demand

Highlights:

• Grayscale files to convert Zcash Trust into a spot ETF for investors.
• ETF will hold real Zcash, track its price, and list on NYSE Arca.
• Growing investor interest in ZEC signals rising confidence and demand for the coin.

Grayscale has submitted an S-3 registration statement to the U.S. Securities and Exchange Commission (SEC). The company aims to convert its Grayscale Zcash Trust into a spot Zcash exchange-traded fund (ETF). This is an important step to bring a privacy-focused cryptocurrency into regulated ETF markets.

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ETF Structure and Zcash Tracking Mechanism

The filing shows that the ETF will hold actual Zcash and track its price using the CoinDesk Zcash Price Index. It also supports a 19b-4 rule change, which would allow the ETF to list and trade on NYSE Arca once approved. This application comes after Grayscale’s earlier successes in converting other trusts. Bitcoin and Ethereum trusts were turned into spot ETFs earlier last year. These experiences give Grayscale the operational and regulatory knowledge to support the Zcash ETF proposal.

In the filing, the firm stated:

“The Trust’s investment objective is for the value of the Shares (based on ZEC per Share) to reflect the value of ZEC held by the Trust, as determined by reference to the Index Price (as defined herein), less the Trust’s expenses and other liabilities.”

The trust has approximately $150 million in holdings in the form of Zcash. The cryptocurrency was created in the year 2016 by the Zerocoin Electric Coin Company. The aim was to provide the users with better privacy tools. With the SEC approval, the Grayscale holdings would be turned into an ETF. This means that the investors would be able to exchange funds through the help of the baskets in the process.

The company has experience and has converted several trusts into an ETF. There has been an increased interest in the ZEC among the investors. The Reliance Group has placed all their cryptocurrency holdings in the form of Zcash.

The proposed ETF follows the standard U.S. spot ETF model. It will charge a 2.5% sponsor fee per year, similar to other Grayscale products. Once it lists on a major exchange, investors from different regions can access it more easily. Grayscale’s filing shows its careful approach to bringing privacy coins into regulated investment structures. 

1/ We just filed @Grayscale Zcash Trust's (Ticker: ZCSH) initial registration statement on Form S-3.

This is an important step for launching the first ZEC ETPs.https://t.co/3jWRDSFxK0 pic.twitter.com/O9scaH2yZY

— Craig Salm🛡️ (@CraigSalm) November 26, 2025

Investor Interest and Market Potential for ZEC

The move reflects the company’s ongoing commitment to turning existing crypto trusts into accessible investment options. If Grayscale successfully converts Zcash into a spot ETF, it will be the firm’s third major trust-to-ETF transition this year. This reinforces its experience and opens the door for more privacy-focused products in regulated markets. “As privacy becomes foundational across crypto, we view ZEC as a key contributor to a well-balanced digital asset portfolio,” Grayscale said in a post on X.

Zcash brings on-chain privacy via zk-SNARK–powered shielded transactions, offering selective disclosure. As privacy becomes foundational across crypto, we view ZEC as a key contributor to a well-balanced digital asset portfolio.

— Grayscale (@Grayscale) November 26, 2025

Over the last two months, ZEC has gained support from retail investors and some large whale trades. The coin bounced back to $520 after briefly dropping near $480. Open interest stayed steady at $711 million, with fewer aggressive short positions. ZEC now looks for a breakout to reach $700 and move into higher price levels.

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