Grayscale Lists First Zcash ETF as ZEC Surges Ahead of Launch

Grayscale launched the first spot Zcash ETF, trading as ZCSH on NYSE Arca. The fund converted from a 2017 trust and launched as ZEC surged, months after a critical vulnerability was patched.

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Grayscale has listed the first exchange-traded fund offering direct exposure to Zcash (ZEC), giving brokerage investors a regulated way to track the privacy coin without holding the token themselves. The fund began trading on Aug. 25 on NYSE Arca under the ticker ZCSH. It carries a 2.5% fee, with revenue from that fee directed back to the Zcash ecosystem to support network development, according to a Grayscale spokesperson.

ZCSH is a conversion of the Grayscale Zcash Trust, which was originally launched as a private placement in October 2017. Grayscale filed with the US Securities and Exchange Commission to convert the trust into an ETF in November. As an exchange-traded product, shareholders own shares intended to track the value of the fund's ZEC holdings rather than holding the coins directly. As of Aug. 24, the trust held more than $313.5 million in assets under management.

The launch follows a significant security event in the Zcash network. In May, a researcher discovered a four-year-old vulnerability in Zcash's Orchard shielded pool that could have allowed an attacker to create counterfeit ZEC. Developers deployed an emergency patch on June 1, but the network's privacy features made it impossible to determine cryptographically whether the flaw had been exploited before discovery.