Grayscale launches first Zcash ETF in the US on NYSE Arca

On 25 August, Grayscale listed the first Zcash-focused ETF in the United States on NYSE Arca. The fund, which trades under the ticker ZCSH, has been converted from the existing Grayscale Zcash Trust and manages over $314 million in assets. With the listing, investors gain access to ZEC, the currency of the Zcash network, through ordinary brokerage accounts, without having to buy or store tokens themselves.

In brief:

• Grayscale lists the first US Zcash ETF (ZCSH) on NYSE Arca on 25 August
• The fund manages approximately $314 million and holds more than 387,000 ZEC
• The 2.5% management fee goes towards the development of the Zcash ecosystem for up to twelve months

From trust to listed fund

ZCSH is not just a new product. It builds on an investment vehicle originally established in 2017, shortly after Zcash was launched in 2016. The fund therefore brings nine years of operational history to the listed market.

According to the official product page, the fund had more than $313.5 million in assets under management on 24 August and held 387,212 ZEC. The net asset value per share is $64.92, based on the CoinDesk Zcash Benchmark Rate. Coinbase Custody Trust Company provides custody of the tokens, while BNY acts as fund administrator.

Management fee goes to Zcash ecosystem

ZCSH’s annual management fee is 2.5%. Grayscale states that the income from this fee will be used for the development of the Zcash ecosystem and the marketing of the product for a period of up to twelve months after the registration becomes effective. These are voluntary payments made by the fund sponsor from its own resources.

Zcash is a privacy coin that gives users the choice to keep transactions shielded or public. The network follows a monetary model similar to Bitcoin, with a maximum supply of 21 million coins and proof-of-work as its consensus mechanism. Shielded transactions have at times accounted for more than 50% of all activity on the network.

Grayscale also previously converted its Bitcoin fund into an ETF. As with Bitcoin ETFs, the ETF structure offers investors the ability to gain exposure through existing brokerage accounts without having to manage the digital assets themselves.

With the listing of ZCSH, Zcash becomes the next privacy-focused coin to receive a listed investment product in the US. Whether similar products for other privacy coins will follow is not yet known.