Key Highlights
- Grayscale filed an S-3 form to convert its Zcash Trust into a spot Zcash ETF.
- The new ETF would hold real ZEC and track the CoinDesk Zcash Price Index.
- The trust holds about $150 million in ZEC and awaits SEC approval for conversion.
Grayscale has filed an S-3 registration with the U.S. Securities and Exchange Commission (SEC) to convert its Zcash Trust into a fully regulated spot Zcash exchange-traded fund, giving investors a regulated way to access the privacy-focused asset.
According to the filing, the new ETF would hold real Zcash and track the CoinDesk Zcash Price Index so the fund can match the real market value of ZEC. The filing also supports a 19b-4 rule change, which would allow the ETF to begin trading on NYSE Arca once regulators approve.
Grayscale noted that issuers with long reporting histories may use the S-3 form because it makes conversions quicker and easier. The company qualifies due to its size, reporting history, and earlier conversions of Bitcoin and Ethereum trusts into spot ETFs in 2024.
Growing interest in Zcash helps the ETF plan
The Zcash Trust Firm currently holds about $150 million worth of ZEC, and these assets would shift into the new ETF structure if the SEC authorizes the plan. Grayscale explained that the ETF would issue and redeem shares in baskets of ZEC, which is the same system many U.S. spot crypto ETFs use today.
Moreover, interest in ZEC has increased after Reliance Group revealed that it is moving its entire crypto portfolio into Zcash. This brought more attention to the asset at a key time for the ETF proposal. The ETF is expected to charge a 2.5% sponsor fee each year and may become available to more regions after it lists on a major exchange.
Craig Salm, Grayscale’s Chief Legal Officer, confirmed on X that this filing is the firm’s first step towards launching Zcash exchange traded products (ETP). He explained that Zcash and its privacy-focused features, including shielded transactions and zk-SNARKs, are important for protecting user privacy on the crypto network.
“Zcash, shielded transactions and zk-SNARKs broadly serve a critical role in privacy-preservation on crypto networks. As a result, we believe ZEC represents an important component of a well-balanced digital asset portfolio,” he said.
Salm also advised that before investing, users “should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering.”
What the trust already holds
Grayscale said the fund will be renamed the Grayscale Zcash Trust ETF after approval and will continue to follow the CoinDesk Zcash Price Index for price tracking. As of September 30, 2025, the trust reported a Principal Market Net Asset Value of about $29.7 million and a non-GAAP Net Asset Value of about $29.8 million.
The company stated that the trust held around 2.4% of all ZEC in circulation at that time. The trust issues and redeems shares in blocks of 10,000 through authorized participants using cash orders, and in-kind share creation may become possible later if NYSE Arca receives additional approval.
In the filing, Grayscale wrote that the goal is to “expand regulated access to a privacy-focused asset through a structure investors already understand,” showing the intent behind the transition.
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