Asset manager Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to launch a Zcash-based ETP. If approved, the product would be the first-ever investment vehicle of its kind focused solely on the privacy asset.
Craig Salm, the company’s Chief Legal Officer, highlighted the strategic value of the token.
“Shielded transactions play a critical role in preserving privacy within crypto networks. Therefore, we believe ZEC represents a worthy component of a balanced digital asset portfolio,” he stated.
Over the past month, Grayscale has actively moved to convert its closed-end trusts into exchange-traded products. The roster already includes funds tracking XRP, Dogecoin, and SOL.
This pivot began following the successful debut of its spot Bitcoin ETF, a direct result of the firm’s court victory over the regulator. Issuers are now operating in a more favorable climate under the Trump administration as the SEC seeks to clarify the status of digital assets.
According to the filing, the investment objective is for the share value to reflect the ZEC price, less the trust’s expenses and liabilities. As of November 25, the fund held over $196 M in assets under management.
Debate Over Market Impact
The filing comes amid heated debate regarding the role of privacy coins and their potential rivalry with Bitcoin.
Earlier this week, Senior Bloomberg ETF Analyst Eric Balchunas expressed concern that Zcash could undercut the leading cryptocurrency.
He compared the asset’s recent rally to a spoiler candidate’s campaign during an election. Balchunas argued that pushing a standalone privacy coin risks splitting investor votes right when Bitcoin needs consolidated support.
Many market participants share this skepticism. Jan3 founder Samson Mow claimed that Bitcoin enthusiasts do not take the asset seriously. Timestamp CEO Arman Megerian also dismissed suggestions that BTC supporters are rotating into the privacy coin.
Some experts suggest the interest is artificial. Venture investor Mark Moss published evidence of marketing agencies offering paid collaborations for Zcash. Meanwhile, market analyst Rajat Soni described the hype as an attempt to find exit liquidity for large players, pointing to fabricated headlines predicting price targets of $100,000.
Institutional Backing
Despite the criticism, the project retains high-profile support. Gemini founders Cameron and Tyler Winklevoss recently launched Cypherpunk Tech, the first treasury company focused on Zcash.
The Winklevoss brothers describe the asset as encrypted Bitcoin and insist the two cryptocurrencies complement rather than compete with each other. In their view, Bitcoin serves as a store of value, while Zcash provides essential transaction privacy.
Read also:
- Zcash Surpasses Monero and Enters Top 20 Cryptocurrencies by Market Cap
- Arthur Hayes Urges Users to Withdraw ZEC from Exchanges and Hide Transactions
- Privacy Coins Resurgence: Monero’s Atomic Swaps Breakthrough
This post is for informational purposes only and does not constitute advertising or investment advice. Please do your own research before making any decisions.