Grayscale files to convert Zcash Trust into spot ETF

Grayscale Investments has filed its fourth updated S-3/A registration statement to convert its Zcash Trust into a spot ETF, proposing a listing on the NYSE Arca under the ticker symbol ‘ZCSH’. The trust is designed to hold ZEC, the native asset of the Zcash network, allowing investors to gain exposure to its price movements through an exchange-traded vehicle.

According to the filing, a subsidiary of Digital Currency Group (DCG) is in non-binding negotiations to contribute approximately 200,000 ZEC tokens to the Trust in exchange for shares. This contribution would represent more than 1% of the total ZEC currently in circulation, with a notional value estimated between $96 million and $111 million based on recent market prices.

Operational roles for the product include Coinbase acting as the prime broker and Coinbase Custody Trust Company providing custody services. Bank of New York Mellon is designated as the transfer agent and manager. If approved, the conversion would implement a creation-redemption mechanism to align the share price with the underlying asset, similar to Grayscale’s previous Bitcoin and Ethereum ETF conversions.