Zcash returns to 2018 levels as Grayscale ETF becomes clearer

Grayscale is moving closer to converting its Zcash Trust into an ETF. In its latest regulatory documents, the manager is targeting a listing on NYSE Arca around August 25, under the ticker ZCSH. The announcement comes at a time when the ZEC is finding prices it has not seen since January 2018.

Grayscale stops fees for its Zcash ETF at 2.5%

Grayscale has filled one of the last empty boxes in its Zcash ETF project. In a fifth amendment filed with the SEC on August 21, the manager sets the product’s fees at 2.5% per year. They will be calculated daily on the net value of the assets held by the trust.

The document also confirms the future name of the product: The Zcash ETF. Its shares must be traded on NYSE Arca under the ticker ZCSH.

Grayscale, which has just reduced its portfolio of altcoin ETFs, is not however disrupting the organization of the fund. Coinbase Custody Trust Company will remain responsible for the custody of ZECs, while Coinbase will serve as prime broker. Bank of New York Mellon will continue to act as administrator and transfer agent.

Another detail of the deposit attracts attention. Grayscale plans to use all fees collected for a period of up to twelve months to promote the fund and support initiatives related to development, marketing and education around Zcash.

However, this is not a reduction in fees for investors. This commitment remains voluntary and Grayscale may terminate or modify it.

August 25 is getting closer, but the listing is not yet certain

A Form 8-K issued the same day gives a more precise indication of the timing. Grayscale expects the trust’s shares to begin trading on NYSE Arca around August 25, 2026.

The name change to The Zcash ETF is expected to take place around the same time. However, the date is not guaranteed. The manager specifies that the listing remains subject to the necessary regulatory authorizations and that it could be delayed or even not take place.

If the transaction is successful, the vehicle would become the first American ETF offering direct exposure to ZEC. Grayscale has also significantly accelerated the pace of its filings in recent weeks, with several successive amendments since the end of July.

The principle of the product remains simple: the trust directly holds ZECs and its shares give investors exposure to the evolution of their value without them having to buy or hold the cryptocurrency themselves.

The ZEC finds prices forgotten since 2018

While Grayscale refines its case, the market has already reacted.

On Saturday, ZEC crossed $800 for the first time since January 2018. The token rose to around $857 during the session before falling back below that high. Over 24 hours, its progression was around 34%which made it one of the best performing assets in the top 100 according to BeInCrypto.

The movement is all the more remarkable as Zcash is coming out of a turbulent period. In June, the revelation of a critical flaw in one of its shielded pools led to a sharp drop in ZEC before the deployment of an emergency patch.

The return above $800 therefore erases a good part of this shock and brings the token back to an area that it has not visited for more than eight years.

This does not mean, however, that Zcash has returned to its all-time highs. Its record still dates back to October 2016, around $3,191. Even after its recent jump, the ZEC remains very far from this level.

The next stage will now be played on the side of Grayscale. The Ironwood update had already brought Zcash back into the spotlight. A listing of ZCSH on NYSE Arca would this time add a real access channel for traditional investors. It remains to be seen whether this interest will translate into lasting flows once the announcement effect has passed.