Grayscale Investments has submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) to convert its Grayscale Zcash Trust into a spot exchange-traded fund (ETF) listed on NYSE Arca under the ticker ZCSH. If declared effective, the trust would be renamed Grayscale Zcash Trust ETF, with shares reflecting the value of the ZEC held by the trust minus fees and liabilities.
The filing is not yet approved. The prospectus states that the information is “not complete and may be changed” and that no shares may be sold until the SEC registration statement becomes effective. Grayscale also warns investors they are not buying ZEC directly; the shares offer exposure through the trust structure. Coinbase Custody acts as custodian, and Coinbase Inc. as prime broker.
Trust Holdings and Asset Changes
According to the trust's latest quarterly filing, as of March 31, 2026, it held approximately 391,103.89 ZEC, with a fair value of $99.4 million, a decline from $200.4 million at the end of 2025. The change reflects price movements and potential redemptions.
SEC Probe Closure Eases Regulatory Hurdle
The ETF push comes after the SEC closed its investigation into the Zcash Foundation in January 2026 without recommending enforcement action. The foundation had received a subpoena in August 2023 related to an inquiry into certain crypto asset offerings. The probe's closure removed a long-standing regulatory overhang for Zcash.
Multicoin's Large Position Fuels Market Sentiment
ZEC also gained attention after Multicoin Capital co-founder Tushar Jain disclosed that the firm had built a substantial position in the privacy coin since February 2024. The disclosure sent ZEC soaring more than 40%. At press time, ZEC traded near $560, down 2% in 24 hours but still up 33% over the past week, after briefly touching $600.
Privacy Upgrade and Institutional Gateway
The Zcash community is advancing the FCMP++ upgrade, aiming to enhance privacy and scalability. If approved, the ETF would provide a regulated gateway for traditional investors to gain ZEC exposure. However, approval remains uncertain pending SEC review, exchange listing approval, and the regulator's stance on privacy-focused crypto assets.