Key Insights
- Grayscale Asset Management Company has filed a Form S-3 statement with the U.S. Securities and Exchange Commission (SEC) to launch the first privacy-focused crypto ETF.
- The proposed ETF will hold and track the price performance of Zcash, adding it to Grayscale’s existing portfolio of crypto ETFs.
- The planned ETF launch comes amid the recent surge in popularity of privacy tokens and rising regulatory efforts.
Grayscale has submitted a Form S-3 initial registration statement with the US SEC to launch a Zcash (ZEC) ETF.
The filing, disclosed via a November 26 announcement, seeks to convert Grayscale’s existing Zcash trust into an ETF.
Grayscale to Launch Zcash ETF
Grayscale’s Form S-3 comes as a pivotal step toward converting the closed-end Trust into the first publicly traded ZEC ETF. The firm launched its ZEC Trust in 2017, one year after the token’s market entrance.
The filing disclosed that Grayscale held approximately 2.4% of the ZEC in circulation as of September 30, 2025. However, the Trust has approximately $196.8 million in assets under management (Non-GAAP) as of Nov. 25, 2025.
ZCash, a token forked from Bitcoin in 2016, leverages zk-SNARKs for selective privacy, including shielded transactions that hide sensitive details. This feature has made it popular among pro-privacy crypto industry players, which would have inspired Grayscale’s move.
Grayscale highlighted that ZEC’s shielded “z-addresses” feature represents a major quantum resilience advantage, presenting an edge over other assets. This mechanism protects ZEC against public-key exposure in Shor’s algorithm attacks, positioning the token as a balanced privacy asset.
The proposed ETF is expected to trade on NYSE Arca with the ticker ZCSH, and its proceeds will consist of ZEC. Coinbase Custody will serve as the custodian, while Coinbase will function as the prime broker, and BNY Mellon will act as the transfer agent.
If approved, the ETF will join Grayscale’s extensive list of crypto-based products, which currently includes Bitcoin, Ethereum, Solana, and others.
While the ETF’s approval timeline is unknown, the application already gives Grayscale the first-mover advantage on ZEC-based products.
Altcoin ETF Surge and Rising Popularity of Privacy Tokens
Grayscale’s filing comes amid the increasing growth of altcoin-pegged ETFs on the market. Over the past month, the market has welcomed multiple ETFs pegged to Solana, XRP, Litecoin, Dogecoin, and HBAR. The products’ rapid market entrance follows the US SEC’s introduction of a framework for launching generic crypto ETFs, highlighting its acceptance.
The ZEC ETF filing also reflects the growing popularity of privacy tokens in the cryptocurrency industry among major players. In recent months, the cryptocurrency industry has shifted its attention to privacy tokens in an effort to evade increasing surveillance by authorities in various regions, including Europe.
ZEC and other privacy tokens, such as Monero, allow users to conceal certain important details related to their transactions. This protects users from regular scrutiny and monitoring from regulators, enhancing the crypto industry’s privacy ethos.
Interestingly, the rising popularity of privacy tokens has had a significant impact on ZEC’s price performance.
Zec Scores Major Price Rally
According to CoinMarketCap data, ZEC has surged 1,000% over the past year, with the majority of the growth occurring in the last three months.
The token’s price rose from around $58 in September to as high as $723 on Nov. 7, 2025. The performance represented the token’s highest point since January 2018, when it traded above $800.
Meanwhile, the asset has since corrected to around $512 after crashing by nearly 15% over the past week. Despite the decline, the token’s current price represents a return in sentiment likely due to Grayscale’s new ETF move. This has pushed the asset’s price upward by nearly 5% in 24 hours.
Though the asset didn’t reach a new ATH during the rallies, it reached a 7-month high. This movement alone positioned the asset as one of the best performers of the 2025 market rally. Specifically, the token remained unfazed in the face of multiple macroeconomic issues, including the infamous Oct. 10 incident.
Oluwapelumi Adejumo is an experienced cryptocurrency journalist who has contributed to leading blockchain news platforms, including CryptoSlate and BeInCrypto.