Winklevoss files Zcash ETF at 0.25% fee, undercutting Grayscale tenfold

The Winklevoss Asset Services filed a preliminary S-1 with the U.S. Securities and Exchange Commission (SEC) on Tuesday, October 6, for a spot Zcash (ZEC) exchange-traded fund (ETF).

It states that it would charge a 0.25% annual sponsor fee, which is one-tenth of what market leader Grayscale charges on the only live U.S. Zcash ETF.

A 0.25% fee against Grayscale’s 2.5%

The fund is named the Winklevoss Zcash ETF, and it would hold ZEC directly and list on Nasdaq under the ticker WINK, according to the S-1 filing.

It is coming with a 0.25% charge that is far below the 2.5% fee that Grayscale takes for ZCSH.

Grayscale’s product is the incumbent the Winklevosses are targeting. ZCSH converted from a long-running trust and began trading on NYSE Arca on August 25, the first U.S. spot fund tracking a privacy coin.

Within a month, it has seen more than $233 million in inflows and approached $890 million in net assets, enough to prompt a 3-for-1 share split.

With WINK coming into the picture, it will be undercutting ZCSH’s fee by 90%.

Who is the custodian and adviser behind WINK?

The custodian is still within the Winklevoss twins orbit, with their exchange, Gemini Trust Company, acting in that capacity. It holds the trust’s ZEC in cold storage.