Grayscale Seeks SEC Approval to Convert Zcash Trust into Spot ETF
Grayscale has applied to the U.S. Securities and Exchange Commission to convert its Zcash Trust into a spot ZEC ETF, with the fund potentially listed on NYSE Arca. If approved, the product would be the first ETF linked to a privacy coin, arriving after several spot crypto ETF approvals and new listings from Grayscale and other managers. The filing highlights growing institutional interest in expanding ETF coverage beyond Bitcoin and Ether to niche digital assets.
The move matters because it would broaden retail and institutional access to ZEC while raising fresh regulatory and compliance questions around transaction privacy and market surveillance. Approval could boost liquidity and price discovery for Zcash but may prompt heightened SEC scrutiny or conditions aimed at AML/KYC safeguards. Timing remains uncertain, and regulators will weigh investor protection and law-enforcement concerns before greenlighting a privacy-coin ETF.