Grayscale Investments has filed to convert its Zcash Trust into a spot exchange-traded fund, a move that would give investors direct exposure to the privacy-focused cryptocurrency through a regulated product. The proposed fund, expected to list on NYSE Arca under the ticker 'ZCSH', would hold ZEC, the native asset of the Zcash network.
Why the filing matters
The filing comes after the SEC concluded its review of the Zcash Foundation without recommending enforcement action or other changes, easing a key regulatory concern that had hung over the token. That clearance likely paved the way for Grayscale to pursue the conversion. The trust would be renamed Grayscale Zcash Trust ETF once the registration becomes effective and shares start trading.
What the trust holds
As of March 31, 2026, the trust held 391,103.88769118 ZEC, down from 393,522.33134026 ZEC at the end of 2025. Using the filing's stated fair value of $254.27 per ZEC, the position was worth roughly $99.45 million at quarter-end. At press time, ZEC traded at $551.44 — more than double the valuation applied in the filing, though fair value can differ from market price depending on the measurement date.
How the fund would operate
The trust uses a cash-order model for creations and redemptions, meaning authorized participants buy and sell shares for cash rather than directly swapping ZEC. An in-kind model may be sought later. Creations and redemptions occur in blocks of 10,000 shares, known as baskets. As of Nov. 21, 2025, about 817.0998 ZEC were needed to create one basket.
Who's behind it
The trust is structured as a Delaware statutory trust. Grayscale Investments Sponsors, LLC is the sponsor. CSC Delaware Trust Company serves as trustee. The Bank of New York Mellon is the transfer agent and administrator. Coinbase, Inc. is the prime broker, and Coinbase Custody Trust Company, LLC holds the ZEC as custodian.
The clock is now on the SEC to either approve or deny the filing. If greenlit, ZCSH would become the first spot ETF for a privacy coin on a U.S. exchange.
