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Grayscale Files to Convert Zcash Trust Into First U.S. Spot Privacy-Coin ETF

Regulators now face questions over custody, pricing transparency, and surveillance for a token that allows private transactions.

Overview

  • Grayscale, which filed the conversion with the SEC on Friday, is seeking an NYSE Arca listing under the ticker ZCSH.
  • The proposed ETF would hold ZEC directly and name Coinbase Custody as custodian with Bank of New York Mellon as administrator.
  • The filing states that shares aim to track the value of ZEC less fees, and it warns that owning the ETF is not the same as holding the coin.
  • The plan follows the SEC’s January closure of its Zcash Foundation review with no enforcement action, easing a long-running regulatory overhang.
  • ZEC spiked from roughly $420 to near $640 after the filing and later settled near $550, while the existing trust reported about 391,104 ZEC worth around $99.4 million at March 31.