Privacy-focused cryptocurrencies are moving back into the ETF spotlight after Grayscale Investments filed with the U.S. Securities and Exchange Commission to convert its existing Zcash Trust into a spot exchange-traded fund.

If approved, the product would trade on the NYSE Arca under the ticker ZCSH, becoming the first U.S.-listed ETF directly tied to a privacy-focused cryptocurrency. The proposed fund would hold ZEC, the native token of Zcash, offering investors direct exposure to the asset instead of relying on futures contracts or crypto-related equities.

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Key Features Of The Proposed Zcash ETF

• The ETF would directly hold ZEC tokens rather than derivatives or futures-based exposure.
• The proposed fund would trade under the ticker ZCSH.
• If approved, it would become the first spot ETF in the U.S. focused on a privacy coin.
• The SEC recently closed its investigation into the Zcash Foundation without recommending enforcement action.
• Institutional interest in Zcash has grown after disclosures showed hedge fund participation, including a notable position from Multicoin Capital.

The filing marks the latest addition to Grayscale's expanding crypto ETF lineup, which already includes products linked to Bitcoin, Ethereum, XRP, Cardano and Dogecoin. According to the filing, the trust would be renamed the Grayscale Zcash Trust ETF once the registration becomes effective.

Coinbase Custody has been listed as the custodian for the proposed fund, while Coinbase would act as prime broker. As of March 31, the Grayscale Zcash Trust reportedly held around 391,103.89 ZEC with a fair market value of nearly $99.4 million.

The SEC's decision to close its investigation into the Zcash Foundation without enforcement action appears to have removed a major regulatory overhang for the project. The development has also revived institutional interest in privacy-focused digital assets, a segment that had largely remained outside the mainstream ETF market conversation until now.

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