Zcash surged to its highest level in roughly eight years on Saturday as investors reacted to another step forward in Grayscale’s effort to convert its existing Zcash trust into a US exchange-traded fund.
Grayscale filed its fifth amended registration statement with the Securities and Exchange Commission on Aug. 21, filling in several details that had remained unresolved in the previous version. The filing does not represent SEC approval, but it brings the proposed product closer to a potential launch. If cleared, it would become the first US ETF designed to directly track ZEC.
Zcash has already been drawing renewed attention following a volatile year for privacy coins, including governance changes, regulatory developments and major protocol upgrades.
Grayscale Sets Zcash ETF Fee at 2.5%
The latest SEC filing sets the sponsor fee at an annual rate of 2.5% of the trust’s NAV fee basis, accruing daily. Grayscale also intends to rename the existing Grayscale Zcash Trust as The Zcash ETF once the registration becomes effective and the shares are listed.
The proposed fund would trade on NYSE Arca under the ticker ZCSH. Coinbase Custody Trust Company is named as custodian, while Bank of New York Mellon would act as administrator and transfer agent. The filing also says Jane Street and Virtu have entered agreements to serve as authorized participants.
Grayscale plans to use 100% of the sponsor fee it receives for up to 12 months on marketing and initiatives supporting the Zcash network, although the commitment is voluntary and can be changed or discontinued.
ZEC Breaks Through Long-Term Resistance
The filing landed as ZEC accelerated an already strong rally. The token moved above $800 on Saturday, returning to levels not seen since early 2018 and briefly trading above $830 in some market feeds. Recent reporting showed ZEC gaining more than 60% over seven days.
The move extends a dramatic recovery from the security scare earlier this year. In June, Zcash developers disclosed a critical Orchard shielded-pool vulnerability that triggered a steep sell-off before an emergency fix restored network functionality. A subsequent security audit found no additional serious protocol flaws.
The network later moved toward its Ironwood upgrade, designed in part to strengthen the shielded transaction system following the Orchard issue.
The ETF filing adds a new institutional catalyst, but approval is still not guaranteed. Grayscale recently withdrew several other proposed altcoin ETF registrations, including products tied to Cardano, Hedera and Polkadot, underscoring that filing progress does not always lead to a launch. That broader ETF activity remains an important backdrop for ZEC investors.
For now, the market is pricing in progress rather than approval. The next test is whether regulatory momentum can sustain a Zcash rally that has already pushed the token back to price levels last seen during the 2018 crypto cycle.
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