Grayscale Files to Launch Zcash ETF After Privacy Coin's 1,000% Price Surge

Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to convert its existing Zcash Trust into a spot Zcash exchange-traded fund (ETF), positioning it to capitalize on the privacy-focused cryptocurrency’s explosive 1,000% price surge over the past year. The filing, announced on November 26, 2025, comes just days after the company launched spot ETFs for Dogecoin, XRP, and Solana, marking an aggressive expansion into altcoin products.

The Filing: Converting the Grayscale Zcash Trust

Grayscale submitted a Form S-3 registration statement to the SEC, seeking to transform its Grayscale Zcash Trust (ZCSH) — which currently manages about $196 million in assets — into a spot ETF. If approved, this would be the first U.S.-listed ETF dedicated to Zcash (ZEC), a privacy coin that uses zero-knowledge proofs (zk-SNARKs) to enable shielded transactions while maintaining blockchain transparency.

The proposed ETF would track Zcash’s price using the CoinDesk Zcash Price Index, with an expense ratio of 2.50%. Grayscale emphasized Zcash’s role as a “key contributor to a well-balanced digital asset portfolio,” highlighting its privacy features as increasingly essential in an era of heightened on-chain surveillance.

The trust, launched in 2021, has traded at a premium or discount to its net asset value (NAV), and conversion to ETF status would provide more liquid, regulated access for retail and institutional investors.

Zcash’s 1,000% Rally: Privacy Demand Drives Surge

Zcash has surged nearly 1,000% over the past year, climbing from around $50 to highs of $750 in November 2025, with a current price near $523. This performance has propelled ZEC’s market cap to $8.58 billion, ranking it 23rd among cryptocurrencies. The rally stems from renewed interest in privacy technologies amid regulatory scrutiny of on-chain data and growing adoption of zk-SNARKs for confidential transactions.

Zcash’s shielded pool now holds over 4.1 million ZEC (30% of supply), and its zk-SNARKs allow users to prove transaction validity without revealing details. The token’s 1,500% October surge, though followed by a 30% pullback, reflects hype-driven momentum, with analysts warning of potential “pump-and-dump” risks from paid promotions.

• Yearly Gain: Nearly 1,000% to $523.
• Market Cap: $8.58 billion (rank #23).
• October Surge: 1,500%, followed by 30% correction.

Grayscale’s Altcoin ETF Push: From Dogecoin to Zcash

Grayscale’s Zcash filing follows a flurry of altcoin ETF launches:

• Dogecoin ETF (GDOG): Debuted November 25 with $1.4 million volume.
• XRP ETF (GXRP): Launched November 25 alongside Franklin Templeton’s XRPZ.
• Solana ETF (GSOL): Converted trust to ETF on November 20.

The company has successfully transformed its Bitcoin and Ethereum trusts into spot ETFs, which have drawn substantial inflows. Grayscale’s strategy targets privacy and utility coins, with ZCSH’s $196 million AUM providing a foundation for the ETF conversion.

Implications for Investors and Privacy Coins

The proposed ZEC ETF would broaden access to a privacy coin that has overtaken Monero in market cap. If approved, it could attract institutional capital seeking diversified exposure to zk-proof technology, though ZEC’s chart shows signs of exhaustion after the rally, with a symmetrical triangle pattern suggesting potential downside to $220-$280.

Grayscale’s push underscores the maturing crypto ETF landscape, with over 100 products expected in the next six months, including more altcoin and themed funds.

In summary, Grayscale’s Form S-3 filing to convert its $196 million Zcash Trust into a spot ETF follows ZEC’s 1,000% yearly surge to $523, joining recent Dogecoin, XRP, and Solana launches amid growing altcoin ETF adoption.