Grayscale files fourth amendment for Zcash ETF on NYSE Arca

Grayscale has filed a fourth amendment to its S-3/A registration statement with the US securities regulator SEC for the Zcash Trust. The company wants to list the fund’s shares on NYSE Arca under the ticker ZCSH. At the same time, the filing reveals that a subsidiary of Digital Currency Group (DCG) is in talks to purchase approximately 200,000 ZEC through the trust, although that agreement is not binding.

In brief:

• Grayscale files the fourth S-3/A amendment with the SEC for its Zcash Trust.
• The shares are proposed for listing on NYSE Arca under the ticker ZCSH.
• A DCG subsidiary is considering purchasing approximately 200,000 ZEC through the trust.

Listing on NYSE Arca as the next step

Grayscale wants to convert its existing Zcash Trust into a listed product. Once the registration statement becomes effective, the trust’s name would be changed and the shares would be tradable on NYSE Arca under the ticker ZCSH.

According to the prospectus, The Bank of New York Mellon is the transfer agent and administrator of the trust, while Coinbase Custody Trust Company is the custodian. The shares are sold based on the ZEC price at the time of the transaction.

DCG subsidiary considers large ZEC purchase

A notable element of the filing is the disclosure that a DCG subsidiary is in talks to purchase approximately 200,000 ZEC through the trust. Grayscale makes clear that this is a non-binding arrangement and that the amount can be increased, decreased or cancelled entirely.

It is not the first time major players have been active around Zcash. Earlier, Cypherpunk launched the world’s largest Zcash mining fleet, illustrating the growing interest in the privacy coin.

Regulatory context and next steps

The SEC has not yet approved the registration statement. The prospectus explicitly states that neither the SEC nor any state regulator has reviewed the securities or determined the accuracy of the prospectus. The final selling price of the shares will be determined based on the ZEC price and the trading price on NYSE Arca at the time of sale.

The filing is a fourth amendment, indicating that Grayscale has already gone through several rounds of changes in the approval process. How the SEC deals with new crypto regulation and similar products remains a decisive factor for the timing of any approval.