Grayscale files for ZCSH High-Income ETF with biweekly payouts

Grayscale has filed a proposal with the U.S. Securities and Exchange Commission (SEC) for a new product called the ZCSH High-Income ETF. Unlike the firm’s existing Zcash ETF (ZCSH), which directly holds Zcash (ZEC), this new fund is designed to generate income through a synthetic covered call strategy using options linked to the existing ZCSH product.

The proposed ETF aims to provide investors with biweekly distributions. To achieve this, the fund would sell call options to collect premiums and buy call options while selling put options to approximate Zcash price movements. This strategy focuses on regular cash flow rather than pure capital appreciation, though it may limit potential gains during significant price rallies.

Separately, Grayscale’s existing Zcash ETF has seen substantial growth, with assets under management (AUM) approaching the $1 billion milestone following a strong rally in ZEC prices. ZEC has recently traded near $1,550, driven by increased interest in privacy-focused cryptocurrencies.