Grayscale Files for Zcash Trust Conversion into Spot ETF

The filing marks a significant milestone for the crypto industry as it represents the first attempt to bring a US-based privacy coin ETF to market. The proposed ETF would hold ZEC in transparent custody at Coinbase, not shielded addresses, and track the CoinDesk Zcash Price Index.

Grayscale's existing Zcash Trust has 391,103.89 ZEC worth approximately $99.4 million as of March 31, 2026. The fund's holdings represent roughly 2.3 percent of ZEC's circulating supply. If approved, the ETF would be a physically backed product, meaning it holds actual ZEC tokens rather than derivatives or futures contracts.

The proposed ETF has several key features, including transparent custody at Coinbase and tracking of the CoinDesk Zcash Price Index. The fund's holdings would be visible on-chain, and ETF investors would gain exposure to a token whose price is driven by other holders using privacy features.