Grayscale filed its fifth amendment with the Securities and Exchange Commission on Friday, advancing its proposed Zcash exchange-traded fund on NYSE Arca under ticker ZCH.
The move targets regulated access to Zcash, a privacy-focused cryptocurrency, through traditional brokerage accounts—a structural shift that extends SEC-approved spot ETF infrastructure beyond the Bitcoin, Ethereum, Dogecoin and XRP products currently trading.
The proposed fund carries a 2.5 percent annual sponsor fee. Bank of New York Mellon will serve as transfer agent, with Coinbase Custody Trust Company holding the underlying ZEC. Grayscale's existing Zcash Trust currently holds more than $260 million in assets, forming the base for conversion.
The filing contemplates an initial contribution of 200,000 ZEC from a Digital Currency Group subsidiary, providing substantial cryptocurrency backing at launch. Grayscale intends to issue shares continuously, with prices tied directly to ZEC spot value.
The filing introduces regulatory questions specific to privacy coins. The SEC's review will evaluate custody, settlement and anti-money-laundering frameworks—areas where Zcash's privacy features create oversight considerations distinct from transparent blockchains like Ethereum.
Grayscale's approach mirrors its successful conversions of Bitcoin and Ethereum trusts into spot ETFs, positioning the firm as an intermediary bringing emerging digital asset classes into the regulated securities market.
