Grayscale has made a bold push into privacy-focused crypto investing with the launch of ZCSH, the first U.S. spot Zcash ETF, now trading on NYSE Arca. Converted from the Grayscale Zcash Trust, the fund began trading this week and recorded approximately $14.8 million in opening-day volume. The ETF rose more than 3.5% intraday before closing down 1.54% at $63.10.
Grayscale Research has issued an aggressive long-term outlook for Zcash, arguing the privacy coin is undervalued. The firm’s model suggests that if ZEC captures just 2% of Bitcoin’s market share, it could climb above $1,622. A more ambitious scenario in which ZEC reaches 10% of Bitcoin’s market capitalization within five years would imply a price target of $8,100.
Grayscale’s Head of Research, Zach Pandl, said Zcash has strong potential to compete with Bitcoin because of its privacy features, especially as demand for financial privacy grows amid AI-powered surveillance. He also highlighted Zcash’s work on quantum-resistant technology and improving cross-chain connectivity. Pandl described Zcash as a “private asset hub with universal connectivity” that can be used by both people and AI agents.
ZEC has rallied roughly 62% over the past week and around 350% year-to-date, recently trading near $790 to $818 after touching its highest level since 2018. At that price, Zcash’s market cap was near $13.78 billion, still about 86% below its October 2016 all-time high of $5,941. Futures open interest fell 12% to $1.65 billion in the 24 hours after the ETF launch, with declines across Binance, OKX, and Hyperliquid, though buying activity later picked up.
Analysts see the ETF as institutional validation that Zcash previously lacked. Some market participants view $1,000 as the next key barrier and $1,200 as a potential extension if fund inflows continue, supported by the NU7 upgrade, which targets a 300% speed improvement for shielded transfers.
