Grayscale Proposes First U.S. Spot Privacy Coin ETF

Grayscale has made significant strides in the world of cryptocurrency investment vehicles with the filing of a plan to convert its existing Zcash Trust into a spot exchange-traded fund (ETF). The proposed ETF would trade on NYSE Arca under the ticker ZCSH and be the first U.S. spot ETF for a privacy coin.

The SEC's closure of its probe into the Zcash Foundation in January 2026 removed a major regulatory barrier, enabling this new development. The fund would hold actual ZEC tokens in transparent custody at Coinbase, allowing institutional investors access to Zcash without needing to use its privacy features directly.

Approval for the ETF is expected by Q3 2026, which could potentially unlock $500 million to $2 billion in new institutional demand. This significant influx of capital could have a substantial impact on ZEC's market dynamics and set a precedent for future privacy coin ETFs in regulated markets.