Grayscale launches first Zcash ETF with direct exposure

Grayscale announced the conversion of its Zcash Trust into an exchange‑traded fund (ETF) that trades on NYSE Arca under the ticker ZCSH. The product gives investors exposure to Zcash (ZEC) without the need to hold the cryptocurrency directly.

ETF structure and fees

The fund holds ZEC and issues shares that trade like a traditional security. Authorized participants can create and redeem shares, providing an arbitrage mechanism intended to keep the market price close to the net asset value of the underlying ZEC. The ETF carries a 2.5% annual sponsor fee, with revenue earmarked for Zcash ecosystem development, marketing and network upgrades.

Regulatory background

Grayscale filed a Form S‑3 registration with the U.S. Securities and Exchange Commission in May, proposing to list the converted trust on NYSE Arca with the ZCSH ticker. Subsequent amendments finalized the fee structure and other terms. Prior to conversion, the Zcash Trust traded on the OTCQX market and held over $313.5 million in assets.

Market reaction

In the days leading up to the launch, ZEC rallied roughly 45%, according to price data cited by The Block. The price increase coincided with the final stages of the ETF registration process.

Technical updates and security

Zcash recently completed the Ironwood (NU6.3) network upgrade, which replaced the Orchard shielded pool with a new design and added safeguards against undetectable counterfeiting. The upgrade followed a June vulnerability disclosure that temporarily affected the Orchard pool but did not result in any reported loss of funds.

Grayscale’s broader ETF strategy

The Zcash conversion follows Grayscale’s earlier trust‑to‑ETF conversions for Bitcoin, Ethereum, XRP, Solana and Litecoin. Coinbase Custody Trust Company serves as custodian for the underlying ZEC, while The Bank of New York Mellon handles administrative functions.