CMC News

#Grayscale Files To Launch First U.S. $ZEC Spot #ETF

Grayscale submitted a registration statement to the Securities and Exchange Commission Wednesday seeking to convert its Zcash Trust into an exchange-traded fund. The filing would create the first U.S. spot ETF tracking $ZEC if approved by regulators.

The investment manager's Zcash Trust currently holds over $196 million in assets under management as of Tuesday. Grayscale stated the fund's investment objective is for share value to reflect $ZEC held by the trust, determined by reference to index pricing minus expenses and liabilities.

$ZEC launched in 2016 through Zerocoin Electric Coin Company to provide enhanced #privacy features for users. The token ranks as the 23rd-largest cryptocurrency by market capitalization. Shielded transactions now represent roughly 30% of $ZEC activity, with 20% to 25% of total supply held in encrypted addresses.

The filing follows substantial price appreciation for $ZEC throughout the year. The token has climbed over 1,000% year-to-date and gained 40% during the past month alone. This performance surpasses both $BTC and $ETH during the same periods.

Grayscale described the move as recognizing privacy becoming foundational across crypto. The firm views $ZEC as a key contributor to well-balanced digital asset portfolios. Approximately 30% of transactions now utilize the shielded pool, marking increased adoption of encrypted transaction #features.