ZEC -4.8% as Grayscale Files First Zcash ETF in U.S.

Grayscale Investments has filed regulatory paperwork with the U.S. Securities and Exchange Commission (SEC) to convert its existing Zcash Trust into the first U.S. spot exchange-traded fund (ETF) tracking Zcash (ZEC). The move aligns with a 1,000% year-to-date price surge for ZEC and growing demand for privacy-focused cryptocurrency assets. If approved, the ETF would mark a significant milestone in the institutional adoption of privacy coins, signaling increased investor interest in alternatives to traditional digital cash.

ZEC, which has gained traction as a privacy-preserving cryptocurrency, now accounts for over 30% of its total transaction volume being processed through shielded pools—its version of encrypted transactions. This adoption has grown steadily in 2025, positioning ZEC as a more functional and mature digital asset. The ETF filing follows a similar strategy to Grayscale’s Bitcoin Trust, which was converted into an ETF in 2024.

The initiative reflects broader industry trends favoring institutional-grade crypto products. Zcash’s rise contrasts with the broader struggles in the crypto market, where total value locked (TVL) in DeFi has fallen by $55 billion since October. However, much of that drop is attributed to price depreciation rather than active outflows, and ZEC’s performance remains stronger than that of bitcoin and ether in recent months. ZEC has climbed more than 1,000% in 2025, outperforming both BTC and ETH during the same period.

Analysts project that a Zcash ETF could attract a new wave of institutional and retail demand, particularly among investors seeking exposure to privacy-centric digital assets. The ETF would also bring ZEC in line with other major cryptocurrencies in terms of tradable product availability, potentially boosting its profile in global markets.

Grayscale’s filing also highlights the regulatory progress being made for crypto-based ETFs, with the SEC still reviewing a separate spot BNB ETF proposal from VanEck. While approval is not guaranteed, the growing number of ETF applications underscores a shift in investor expectations and regulatory engagement with the space.

As of Nov 30, 2025, ZEC traded at $436.87, down 5.14% in the last 24 hours and 14.57% in the past seven days. Despite the recent pullback, the token has gained 7.96% in the past month and 676.29% over the past year.