Grayscale Zcash ETF Filing Advances as ZEC Price Rises

Grayscale has taken another step toward launching a spot Zcash ETF in the United States after updating its registration paperwork with the U.S. Securities and Exchange Commission (SEC). The asset manager filed Amendment No. 4 to its Form S-3 registration statement, bringing the proposed Grayscale Zcash ETF closer to a potential NYSE Arca listing.

Grayscale plans to convert the existing Grayscale Zcash Trust into a spot exchange-traded fund that would provide investors with exposure to the ZEC price without directly holding the privacy-focused cryptocurrency. If approved, shares would trade on NYSE Arca under the ticker ZCSH. The filing has yet to disclose a management fee or introductory fee waiver.

One significant update involves how ETF shares would be created and redeemed. The fund expects to process creations and redemptions mainly through cash transactions. While in-kind creations remain possible, the latest filing clarifies that in-kind redemptions would not be permitted.

The filing also reveals discussions between the ETF sponsor and DCG International Investments Ltd., an indirect subsidiary of Grayscale parent Digital Currency Group. Under a proposed but non-binding arrangement, the company could obtain ETF shares through an authorized participant by contributing 200,000 ZEC.

Zcash reacted positively to the development, with ZEC price rising more than 2% over 24 hours to around $510.70. During the period, ZEC traded between $500.47 and $514.03, although trading volume declined 16%.

Technical indicators show ZEC remaining above its 50-day simple moving average, which is acting as an important support zone. Following the recent Zcash Ironwood upgrade, analysts are watching $520 as near-term resistance. A sustained move above that level could put $550 in focus.

Derivatives activity remained mixed. ZEC futures open interest increased roughly 1% to a reported $928.22 billion, while Binance recorded a 3.9% decline. Open interest rose nearly 9% on Hyperliquid, 3.4% on OKX and 2.18% on KuCoin, highlighting differing trader positioning as the Grayscale Zcash ETF moves through the SEC registration process.