First Spot Zcash ETF? Grayscale Pushes Privacy Coin Into ETF Race

Grayscale has filed to convert its Zcash Trust into a spot exchange-traded fund, setting up a potential first for regulated exposure to a privacy coin in the U.S. ETF market. If approved and listed, the product would give investors exchange-traded access to ZEC without requiring them to custody the asset directly.

Grayscale’s registration statement describes the product in direct terms. “The Trust’s purpose is to hold ‘ZEC’, which are digital assets that are created and transmitted through the operations of the peer-to-peer Zcash Network, a decentralized network of computers that operates on cryptographic protocols. 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, less the Trust’s expenses and other liabilities.”

The filing also stresses that the shares are not the same as holding ZEC directly. “While an investment in the Shares is not a direct investment in ZEC, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to ZEC. Grayscale Investments Sponsors, LLC is the sponsor of the Trust.”

The trust is structured as a Delaware statutory trust. Grayscale Investments Sponsors, LLC is listed as sponsor, CSC Delaware Trust Company as trustee, The Bank of New York Mellon as transfer agent and administrator, Coinbase, Inc. as prime broker, and Coinbase Custody Trust Company, LLC as custodian.

The registration statement says creations and redemptions would occur in blocks of 10,000 shares, referred to as baskets. As of Nov. 21, 2025, approximately 817.0998 ZEC were required to create one basket of 10,000 shares.

For now, the filing describes a cash-order model. Under that structure, an authorized participant deposits or receives cash, while a third-party liquidity provider sources or receives the ZEC. The trust is not currently able to process in-kind creations and redemptions with authorized participants, though NYSE Arca may later seek approval for that model.

The filing follows a notable shift in the regulatory backdrop around Zcash. The SEC concluded its review of the Zcash Foundation without recommending enforcement action or other changes, easing a long-running concern around one of the crypto market’s best-known privacy-focused networks.

The Zcash Foundation said: “We are pleased to announce that the SEC has concluded its review and informed us that it does not intend to recommend any enforcement action or other changes against Zcash Foundation regarding this matter. This outcome reflects our commitment to transparency and compliance with applicable regulatory requirements. Zcash Foundation remains focused on advancing privacy-preserving financial infrastructure for the public good.”

The SEC’s conclusion does not amount to ETF approval. It does, however, change the setting for Grayscale’s attempt to bring a privacy-coin product into a regulated public-market wrapper.

At press time, ZEC traded at $551.44.