Zcash (ZEC) has climbed to its highest price since 2016, with the cryptocurrency's market capitalization topping $20 billion. The token gained 45% over the past week, a rally that coincides with Grayscale's conversion of its Zcash Trust into an exchange-traded fund.
Grayscale's ETF conversion
Grayscale converted its Zcash Trust into an ETF, and the fund began trading on Aug. 25. The move gives investors a regulated way to buy and sell ZEC through a traditional brokerage account, a step that often broadens a cryptocurrency's appeal.
The ETF's debut follows a pattern of Grayscale converting its single-asset trusts into ETFs for major cryptocurrencies. For Zcash, the conversion marks a shift from a closed-end trust structure to an open-ended fund that can create and redeem shares as demand changes.
Price and market cap
ZEC's price surge has pushed its market cap above $20 billion for the first time since the digital asset's early days. The 45% weekly gain is among the steepest in the crypto market over that period.
The exact price level was not disclosed in the available data, but the milestone reflects a sharp turnaround for a token that had traded well below its 2016 highs for years.
The rally comes as the broader crypto market shows renewed interest in privacy-focused coins, though no specific driver beyond the ETF conversion was cited in the facts.
What the ETF means for ZEC
With the ETF now trading, institutional and retail investors can gain exposure to Zcash without holding the underlying token directly. That convenience often leads to increased liquidity and price discovery.
The conversion also removes the discount that sometimes plagued closed-end trusts, since ETF shares can be arbitraged against the underlying asset. For Zcash holders, the structure change may reduce the gap between the fund's share price and the actual value of the ZEC it holds.
The ETF began trading on Aug. 25, and ZEC's price has since climbed to levels not seen in nearly a decade.
