Grayscale has brought renewed institutional interest in privacy-focused cryptocurrencies to the forefront with its move to convert its Zcash Trust product into a spot ETF. If the application is approved, the product could trade on the NYSE Arca under the ticker symbol ZCSH, becoming one of the first spot ETFs linked to a privacy-themed crypto asset. According to Grayscale's filing, the trust will be named Grayscale Zcash Trust ETF if the registration process is completed and the exchange listing takes place. Instead of directly purchasing ZEC, the structure aims to offer investors exposure to the ZEC price through trust shares. The filing states that the purpose of the product is to hold ZEC, and the share value will reflect the value of the ZEC held within the trust after deducting fees and liabilities. Coinbase Custody is listed as the custodian, and Coinbase Inc. as the prime broker. However, the application does not guarantee ETF approval. The prospectus clearly states that the information is not yet complete and is subject to change. It also notes that shares cannot be sold until the registration statement is finalized by the SEC. Therefore, despite the excitement on the market front, the process still seems to depend on the SEC review, exchange listing approval, and how regulators will approach a privacy-focused spot crypto ETF.
Privacy coins back on the institutional radar
The ETF application wasn't the only factor in Zcash's resurgence. The SEC's closure of its review of the Zcash Foundation in January without recommending any sanctions or regulatory changes eased the long-standing regulatory pressure on the project. This development reduced the uncertainty surrounding Zcash and contributed to a partial softening of the perception of privacy coins. While Zcash has a structure similar to Bitcoin, its key differentiating feature is its selective privacy capabilities. The network allows for the protection of transaction amount, sender, and receiver information with cryptographic protocols called zk-SNARKs. However, Zcash transactions do not proceed in a completely closed system; users can disclose certain information when necessary, and transfers remain verifiable on the chain. On the institutional side, the detail of Multicoin Capital also attracted attention. Market interest further increased when Tushar Jain, one of the company's co-founders, announced that the firm had built a large position in ZEC. According to relevant market updates, ZEC surged over 40% after Multicoin announced it had been accumulating ZEC since February 2024.
ZEC price pauses after sharp rally
The ETF application and expectation of institutional demand triggered a strong rise in the ZEC price. The token briefly approached $600, then retreated to the $550-$560 range. According to market data, ZEC was trading around $560 at the time of writing; it had fallen by approximately 2% on a daily basis but maintained a gain of around 33% on a weekly basis.
Grayscale's latest quarterly filing also contains noteworthy data regarding the size of the trust. Accordingly, the product held approximately 391,103 ZEC as of March 31, 2026. The fair value of these assets stood at $99.4 million at the end of the quarter, below the projected $200.4 million value at the end of 2025. The main focus for Zcash going forward will be how its ETF application is received by the regulatory process. Following the spot Bitcoin and Ethereum ETFs, the crypto market is closely watching whether products tied to more niche assets will also receive approval. The issue is more sensitive for Zcash; while its privacy feature offers a strong narrative regarding individual financial privacy, it raises additional questions in areas such as institutional custody, supervision, compliance, and proof of reserves.
