TLDR
- Grayscale filed Form S-3 with the SEC to convert its Zcash Trust into a spot ETF, which would be the first ETF tied to a privacy coin.
- The Zcash Trust manages $196.8 million in assets and could list on NYSE Arca following the conversion process.
- ZEC price increased over 50% in 30 days and 1,050% in 12 months, trading around $500-$522 after the filing announcement.
- Futures markets showed a sell-the-news reaction with open interest dropping 6.24% while trading volume jumped 20.7%.
- Long-to-short ratios fell below 1.0 on major exchanges, indicating weakened bullish sentiment despite the regulatory progress.
Grayscale submitted paperwork to the US Securities and Exchange Commission on Wednesday to convert its Zcash Trust into a spot exchange-traded fund. The move could create the first investment vehicle tied to a privacy coin.
We’ve filed the ZCSH Form S-3 – an important step required to launch the first ZEC ETPs.
Zcash launched in 2016. Seeing the potential of the Zcash protocol, we launched Grayscale Zcash Trust (Ticker: ZCSH) as a private placement in 2017.
— Grayscale (@Grayscale) November 26, 2025
The digital asset manager filed a Form S-3 registration statement for the fund. This simplified filing could allow the Zcash ETF to list on NYSE Arca.
The Zcash Trust currently manages $196.8 million in assets. It trades under the ticker ZCSH with a 2.50% expense ratio.
Grayscale launched the trust as a private placement in 2017. That was just one year after the Zcash blockchain’s genesis block.
The conversion follows Grayscale’s launch of other spot ETFs. The company has already listed funds tied to Bitcoin, Ether, Dogecoin, and XRP.
Grayscale debuted its first spot DOGE ETF this week. The fund saw $1.4 million in volume on Monday.
This morning, @Grayscale filed a Form S-3 to convert the Zcash Trust into an ETP
Launched in 2017 well before privacy emerged as an investment theme, the Zcash Trust was one of Grayscale’s earliest products https://t.co/Uzou265sNI
— Barry Silbert (@BarrySilbert) November 26, 2025
The filing comes as US regulators have softened their stance on crypto ETFs under the Trump administration. Chairman Barry Silbert expressed confidence in the asset’s long-term role in the market.
ZEC Price Performance Shows Mixed Signals
ZEC price increased more than 50% in the past 30 days. Over the past 12 months, the token gained 1,050%.
At the time of the announcement, Zcash traded around $500 to $522. The price posted less than 1% in intraday gains.
Futures markets indicated a sell-the-news reaction to the filing. Open interest fell 6.24% to just above $1 billion.
Trading volume jumped 20.7% to $3.57 billion. The combination of declining open interest and rising volume suggests traders took profits on the news.
Long-to-short ratios fell below 1.0 on major exchanges. The ratio dropped as low as 0.88 among whale traders on Binance.
This shift in futures positioning reflects weakened bullish conviction. Traders are pricing in a low probability of ZEC breaking above the $505 resistance level in the near term.
Institutional Interest in Privacy Coins Grows
Earlier this month, Leap Therapeutics announced plans to acquire ZEC tokens. The company received a $50 million investment from Winklevoss Capital for its cryptocurrency treasury strategy.
LATEST: ⚡ Nasdaq-listed Leap Therapeutics is rebranding to Cypherpunk Technologies and becoming a Zcash treasury company backed by the Winklevoss Twins, with the goal of scooping up at least 5% of all ZEC. pic.twitter.com/uOHRT92YBD
— CoinMarketCap (@CoinMarketCap) November 12, 2025
Winklevoss Capital is the venture capital firm founded by Gemini creators Cameron and Tyler Winklevoss. The investment marks institutional interest in privacy-focused cryptocurrencies.
ETF analyst Eric Balchunas suggested the privacy coin could pull support away from Bitcoin. Many users remained skeptical of his claims on social media.
The conversion to a spot ETF would bring ZEC in line with newly approved altcoin ETFs. The Bitwise Solana ETF accumulated $621 million in under a month.
Strong inflows into comparable products highlight expectations that ZEC could attract institutional capital. The SEC initially approved the listing and trading of spot Bitcoin ETFs in January 2024.
Since then, several asset management companies have expanded their offerings. Grayscale, Bitwise, BlackRock, and others now include exposure to multiple cryptocurrencies.
The Zcash Trust filing represents a required step toward launching the first institutional Zcash exchange-traded products. ZEC price remains near the $500 level as the market awaits further regulatory clarity.
