Grayscale Investments has officially filed a registration statement with the US Securities and Exchange Commission (SEC) to convert its Grayscale Zcash Trust into an exchange-traded fund. This move would mark the first Zcash-focused ETF in the market, providing a regulated investment vehicle for the 23rd largest cryptocurrency by market capitalization. The existing Grayscale Zcash Trust currently holds over $196 million in assets under management.
The proposed ETF’s investment objective is for the value of the shares to reflect the underlying value of ZEC held by the Trust, minus expenses and liabilities. This structure mirrors Grayscale’s strategy following its successful legal challenge against the SEC regarding the conversion of its Bitcoin trust. The firm has since moved to convert several other closed-end products into ETFs.
Institutional Positioning in the Digital Asset Space
The filing for a Zcash ETF is part of a broader institutional trend by Grayscale to expand its lineup of single-asset crypto ETPs. In the past month, the firm has already converted trusts tracking XRP, Dogecoin, and SOL into exchange-traded products. This proactive strategy allows Grayscale to maintain market leadership and capitalize on increasing investor demand for diversified, regulated crypto exposure.
Zcash, introduced in 2016, is notable for its focus on enhanced user privacy, utilizing zero-knowledge proofs to allow for shielded transactions. Grayscale views this privacy attribute as a “key contributor to a well-balanced digital asset portfolio,” as noted in a recent public statement. The launch of a ZEC ETF provides institutional access to an asset class increasingly valued for its privacy features in the evolving digital economy.
Zcash brings on-chain privacy via zk-SNARK–powered shielded transactions, offering selective disclosure. As privacy becomes foundational across crypto, we view ZEC as a key contributor to a well-balanced digital asset portfolio.
— Grayscale (@Grayscale) November 26, 2025
Competitive and Regulatory Environment
The company’s ability to convert these trusts is facilitated by a more receptive regulatory environment within the SEC, particularly under the current administration, which is seeking to clarify its stance on digital assets. This shift has unlocked the path for various crypto-related ETFs and exchange-traded products. Grayscale’s aggressive conversion schedule signals its intent to capture market share across a wider spectrum of digital assets beyond just Bitcoin and Ethereum.
The introduction of a Zcash ETF will offer investors the opportunity to gain ZEC exposure without the complexities of directly purchasing and securing the underlying asset. This makes the product a competitive offering against direct token holdings or over-the-counter trust shares, especially for traditional financial firms and retail brokerages. The focus now shifts to the SEC’s review process, which will determine the timing of the ETF’s market debut.
