ZEC drops 5.08% after Grayscale submits application to turn Zcash Trust into a spot ETF

Grayscale Seeks Approval for First U.S. Zcash ETF

Grayscale Investments has initiated the process to launch the first exchange-traded fund (ETF) for Zcash (ZEC) in the United States, submitting a registration statement to the Securities and Exchange Commission. The planned ETF, which would trade on NYSE Arca under the ticker ZCSH, aims to convert the existing Grayscale Zcash Trust into a publicly traded fund. This step is part of Grayscale’s ongoing efforts to provide institutional investors with regulated access to digital assets.

Details of the Proposed Zcash ETF

Currently, the Grayscale Zcash Trust manages about 394,400 ZEC, with a total value of approximately $199.2 million at present market rates. Should the ETF receive regulatory approval, it would become the first spot Zcash product available on a U.S. exchange, opening the door for broader participation from both institutional and traditional investors. Coinbase Custody has been selected as the custodian, while the Bank of New York Mellon will handle transfer agent and administrative duties.

Institutional Interest in Privacy Coins Grows

The filing underscores a rising interest among institutions in privacy-oriented cryptocurrencies. ZEC leverages zero-knowledge proofs (zk-SNARKs) to enable optional privacy for transactions, a feature that has gained traction as the regulatory landscape and market sentiment shift. Craig Salm, Grayscale’s chief legal officer, highlighted ZEC’s significance in a diversified crypto portfolio, particularly for its privacy-preserving capabilities on blockchain networks.

Timeline and Regulatory Outlook

The timeline for converting the trust to an ETF remains uncertain, as previous Grayscale transitions have varied in duration. For instance, the company’s Dogecoin Trust conversion was completed in roughly three months, while a multi-asset ETF took nearly a year from filing to launch. The fate of the Zcash ETF will hinge on regulatory scrutiny and prevailing market conditions.

Corporate Adoption and Strategic Moves

Reliance Global Group, Inc. has recently expanded its holdings in Zcash as part of its Digital Asset Treasury (DAT) initiative. The company pointed to ZEC’s Bitcoin-derived security, privacy options, and selective disclosure features as key factors behind its investment. This decision reflects a strategic shift toward privacy-focused digital assets, though Reliance also acknowledged potential risks, including liquidity challenges, regulatory ambiguity, and concentration concerns.

ZEC Price Trends and Market Sentiment

Recent price movements for ZEC illustrate increased demand and strategic positioning by investors. As of November 27, 2025, ZEC is priced at $501.66, representing a 5.08% decrease over the past day, a 3.42% drop over the week, a 23.63% gain in the past month, and an impressive 789.04% surge year-over-year. The token has climbed more than 500% in the last two months, fueled by large investor activity, consistent open interest, and heightened institutional involvement.

Analyst Perspectives and Future Outlook

Despite the recent pullback, market analysts maintain a cautiously optimistic outlook. Technical analysis suggests ZEC may experience further consolidation, but the broader upward trend remains intact. The 14-day RSI for ZEC/USD stands at 45.006, indicating a neutral position, while moving averages currently point to a strong sell signal. Observers are monitoring the ETF approval process closely, as its outcome could influence institutional adoption and liquidity for ZEC.

Significance of the Grayscale Zcash ETF Filing

Grayscale’s application to convert its Zcash Trust into an ETF marks a significant milestone for the privacy coin, potentially connecting privacy-centric blockchain technologies with mainstream financial markets. Enhanced transparency in custody and regulatory oversight could make the ETF an attractive entry point for investors seeking ZEC exposure without direct asset management. If approved, the ZCSH ticker may become a key component in institutional crypto portfolios moving forward.