Grayscale Investments has taken another significant step toward offering the first US spot exchange-traded fund focused on Zcash, the privacy-oriented cryptocurrency.
On August 21, 2026, the firm submitted Amendment No. 5 to its Form S-3 registration statement with the US Securities and Exchange Commission (SEC), refining details for converting its longstanding Grayscale Zcash Trust into a continuously offered ETF.
The existing product, launched in 2017 and currently trading over-the-counter under the ticker ZCSH, holds substantial ZEC holdings with assets under management exceeding $260 million in recent reports.
Upon effectiveness of the registration and listing, Grayscale plans to rename the vehicle “The Zcash ETF.”
Shares are intended to trade on NYSE Arca under the symbol ZCSH.
The Bank of New York Mellon would act as transfer agent and administrator, while Coinbase Custody Trust Company, LLC serves as custodian, with Coinbase, Inc. as prime broker.
The trust’s objective remains straightforward: the value of its shares should track the price of the underlying ZEC, measured against an index such as the CoinDesk Zcash Benchmark Rate, after deducting expenses.
Creations and redemptions would occur primarily through cash orders in baskets of 10,000 shares, with in-kind creations available but in-kind redemptions not currently permitted.
This structure aims to improve liquidity and help keep share prices closer to net asset value, addressing the historical premiums and discounts seen on the OTC market.
A key disclosure involves potential additional inflows. Grayscale is in non-binding discussions with DCG International Investments Ltd., a subsidiary of its parent Digital Currency Group, about a contribution of approximately 200,000 ZEC in exchange for shares after the registration becomes effective.
At recent prices near $555, this would represent roughly $110 million in value, though the parties emphasize that the actual amount—if any—could differ substantially.
The sponsor fee is set at an annual rate of 2.5 percent of the relevant net asset value basis, payable in ZEC.
Grayscale has indicated plans to allocate the fee received in the first year toward marketing and support for the Zcash network.
Authorized participants such as Jane Street Capital and Virtu Americas are expected to facilitate creations and redemptions.
Zcash, launched in 2016, ranks among the larger cryptocurrencies by market capitalization and emphasizes optional privacy features through zero-knowledge proofs.
The filing also references recent network developments, including the resolution of a vulnerability in the Orchard shielded pool via the Ironwood upgrade, which aimed to strengthen supply integrity and security.
If approved and launched, the product would mark a milestone as the first US spot ETF providing direct exposure to a privacy-focused digital asset.
It would allow traditional investors easier access without the need to manage private keys or navigate cryptocurrency exchanges directly.
Market reaction has been positive, with ZEC prices rising notably amid the filing updates.
Regulatory approval is not guaranteed, and the registration remains subject to completion.
Privacy coins face unique scrutiny compared to more transparent assets like Bitcoin or Ethereum, yet progress on other crypto ETFs has created a more receptive environment.
The conversion of an established trust with existing assets provides a foundation that pure startups lack.
The amended filing signals Grayscale’s continued push to expand institutional and retail access to specialized digital assets. Success could broaden the crypto ETF landscape beyond the dominant Bitcoin and Ethereum products.
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