Grayscale Moves to Launch Zcash ETF After Explosive Rally

Zcash’s Wild Price Run Sparks Institutional Interest

Grayscale is making a bold move into the privacy-focused crypto sector, filing to launch a Zcash Trust just weeks after ZEC skyrocketed over 1,000%, marking its biggest surge since 2018. The company-known for packaging digital assets into regulated, institution-friendly investment products-is preparing to bring ZEC into its expanding roster of crypto offerings.

Craig Salm, Grayscale’s Chief Legal Officer, confirmed the filing, calling it a significant expansion into a class of assets long considered too risky, opaque, or regulatory-sensitive for mainstream investors. For years, Zcash’s strong privacy features pushed traditional institutions away, but the recent frenzy has forced a reconsideration.

Grayscale Positions ZEC for Institutional Access

The new Zcash Trust will operate similarly to Grayscale’s other crypto trusts, offering exposure through a regulated wrapper rather than requiring investors to custody tokens themselves. It signals a shift in how large firms view privacy coins, which regulators have historically treated with caution. 

The company noted the product may eventually transition into a full exchange-traded fund (ETF) if U.S. regulators continue loosening restrictions. Until then, investors will access ZEC through shares representing pooled holdings, structured to track the token’s market performance.

Grayscale emphasized that the Trust widens access to an asset previously available only through tokenized or de-anonymized forms, adding that investor demand has grown rapidly after ZEC’s dramatic price breakout.

Trust Shares Restricted to Accredited Investors

As a high-risk, niche digital asset, early investment in ZEC through the Trust will be restricted to accredited investors-individuals with at least $1 million net worth and $200,000 in annual income. Shares will trade under the ticker ZCHS on the OTC market before an anticipated listing on NYSE Arca.

Grayscale plans to issue the shares on an ongoing basis, maintaining price alignment through daily adjustments tied to ZEC’s Net Asset Value (NAV). The Trust will create and redeem baskets of 10,000 shares to manage demand and keep the market liquid, a structure used across its existing lineup.

The firm expects the Trust to “reflect ZEC’s real price with better liquidity” potentially enabling arbitrage opportunities during its early trading phases.

Reliance Global Group Builds a ZEC Treasury Position

Zcash’s comeback is not limited to markets-corporate treasuries are getting involved. Reliance Global Group, Inc. (RELI) announced a substantial new ZEC position, calling Zcash its primary digital asset exposure under a growing Digital Asset Treasury (DAT) strategy.

Analysts tracking whale activity noted that ZEC’s recent rally was fueled by retail demand, but also a wave of large, strategic purchases by treasury-focused entities. After a dip below $480, ZEC rebounded sharply to $503.61, signaling persistent bullish sentiment even after its massive run.

A New Institutional Era for Privacy Coins

Grayscale’s expansion into Zcash marks a turning point for privacy assets, traditionally sidelined due to regulatory uncertainty. With rising demand and new financial infrastructure forming around ZEC, the sector may be entering its first serious institutional cycle.