Grayscale Launches World's First Zcash ETF Under Ticker ZCSH on NYSE Arca

The Block··US·Read original
4▲1 ▼0Impact / 5
Summary · why it matters

Grayscale officially began trading its Zcash ETF under the ticker ZCSH on the NYSE Arca exchange on Tuesday, becoming the world's first exchange-traded product (ETP) to provide direct exposure to Zcash (ZEC), a cryptocurrency focused on transaction privacy, amid a sharp rise in ZEC's price over the past few days, according to The Block. ZCSH is a conversion of the Grayscale Zcash Trust, which was first launched as a private placement in October 2017. As of Monday, the trust had over $313.5 million in assets under management (AUM). The new ETF charges a fee of 2.5%, and a Grayscale spokesperson said the fee revenue will be used to support and promote the development of the Zcash network. Steve Vanourny, Grayscale's head of index, commented on the timing of the product launch, linking the demand for financial privacy to the growth of artificial intelligence (AI). Over the past few days, Zcash's value has surged about 45%, according to The Block's price data, following our previous report that ZEC broke through the $800 level for the first time in eight years, surpassing its previous high from 2018, boosted by the news of the Grayscale ETF. Prior to the launch, Grayscale had just filed its fifth amendment before the weekend, and the previous amendment also revealed that a subsidiary of Digital Currency Group (DCG), Grayscale's parent company, was considering purchasing about 200,000 ZEC through the trust. Grayscale made clear that ZCSH is an ETP that is not registered under the U.S. Investment Company Act of 1940 (the '40 Act), and therefore is not subject to the same regulations and protections as ETFs or mutual funds registered under that law. Investing in ZCSH carries high risk and extreme volatility, and is not suitable for investors who cannot bear the risk of losing their entire investment. Investing in this fund is not a direct investment in ZEC.

Impact on assets 1

Others▲ · 1 stocks
Zcash
ZEC-USD
▲ PositiveDemandrelevance

Launch of first Zcash ETF provides direct exposure and boosts demand for ZEC.

Theme Impact 1

Off-coverage companies 2

Grayscale InvestmentsPrivate▲ Positive
Capitalrelevance

Grayscale launches first Zcash ETF, converting trust and generating fee revenue.

Digital Currency GroupPrivate▲ Positive
Capitalrelevance

DCG subsidiary considering purchasing 200,000 ZEC through the trust, benefiting from ETF launch.

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