Grayscale files Zcash ETF as privacy coin demand returns

Grayscale is seeking to convert its Zcash Trust into a spot exchange-traded fund, a move that could test investor demand for regulated privacy coin exposure. 

Summary

• Grayscale’s Zcash Trust filing seeks NYSE Arca listing under ZCSH if regulators approve the plan.
• The SEC closed its Zcash Foundation probe in January without recommending enforcement action or regulatory changes.
• Multicoin’s ZEC position has renewed market interest as privacy coins return to institutional watchlists.

The filing says the trust would be renamed Grayscale Zcash Trust ETF if the registration becomes effective and the shares list on NYSE Arca.

The proposed product would trade under the ticker ZCSH. The trust’s goal is to hold ZEC and let share value reflect the ZEC held by the trust, minus fees and liabilities.

Filing still needs approval

The filing does not mean the ETF has been approved. The prospectus states that the information is “not complete and may be changed.” It also says shares cannot be sold until the SEC registration statement becomes effective.

Grayscale also warns that investors are not buying ZEC directly. The shares are designed to give exposure to ZEC through the trust structure, with Coinbase Custody listed as custodian and Coinbase Inc. listed as prime broker.

The trust’s latest quarterly filing showed it held about 391,103.89 ZEC as of March 31, 2026. Its ZEC investment had a fair value of $99.4 million at quarter-end, down from $200.4 million at the end of 2025.

SEC probe closure eased pressure

The ETF push comes after the SEC closed its Zcash Foundation probe without recommending enforcement action. The foundation had received a subpoena in August 2023 tied to an inquiry into certain crypto asset offerings.

Crypto.news reported that the SEC outcome removed a long-running regulatory overhang for Zcash. The report also noted that Zcash’s shielded transactions allow users to keep transaction details private while keeping transfers verifiable on-chain.

Multicoin position adds market attention

ZEC also drew fresh attention after Multicoin Capital co-founder Tushar Jain said the firm had built a large position in the privacy coin. Related market updates said ZEC surged more than 40% after Jain disclosed that Multicoin had accumulated ZEC since February 2024.

Meanwhile, at press time Zcash (ZEC) traded near $560, showing nearly 2% decline in the past day but 33% increase in the past week, according to crypto.news data.

That rally pushed ZEC near $600 before it cooled. Separate reports said investor interest also rose before Zcash’s FCMP++ upgrade, which aims to improve privacy and scalability features.

The proposed ETF could give Zcash a new bridge to traditional investors, but approval remains uncertain. The next step depends on SEC review, exchange listing approval, and whether regulators accept a spot ETF tied to a privacy-focused crypto asset.