Grayscale Investments has submitted a filing with the U.S. Securities and Exchange Commission (SEC) to convert its existing Zcash (ZEC) trust into a spot exchange-traded fund (ETF). If approved, the fund would become the world’s first spot ETF for a privacy-focused cryptocurrency, marking a significant milestone for a sector that has long operated under regulatory uncertainty.
The move follows the SEC’s closure of its Zcash Foundation probe in January 2026 without recommending enforcement action or regulatory changes. This decision removed a long-running regulatory overhang, and analysts interpret it as a potential shift toward a more nuanced, compliance-focused approach rather than outright prohibition of privacy coins.
Grayscale’s filing reveals that the trust, which held about 391,103.89 ZEC as of March 31, 2026 (fair value $99.4 million, down from $200.4 million at end-2025), would be renamed the Grayscale Zcash Trust ETF and trade under the ticker ZCSH on NYSE Arca. Coinbase Custody would serve as custodian, with Coinbase Inc. as prime broker. The prospectus cautions the information is not complete and shares cannot be sold until the SEC registration statement becomes effective.
The ETF filing also comes amid renewed market interest. Multicoin Capital co-founder Tushar Jain disclosed the firm had built a large ZEC position, sparking a more than 40% surge in ZEC. At press time, Zcash traded near $560, a 33% gain over the past week. Investor attention has also been fueled by the upcoming FCMP++ upgrade, which aims to improve privacy and scalability.
A spot ETF would offer institutional and retail investors a regulated vehicle for Zcash exposure without self-custody complexities. Approval could pave the way for similar privacy coin products and boost liquidity and legitimacy across the privacy ecosystem. However, the final decision rests with the SEC, and approval remains uncertain.
