ZEC Up 0.15% on Grayscale’s Zcash ETF Filing Amid 1,000% Rally

Grayscale has filed to convert its Zcash Trust into the first U.S. spot ETF tracking Zcash (ZEC), signaling increased institutional interest in the privacy-focused cryptocurrency. The move comes as ZEC has surged more than 1,000% year-to-date through November 30, 2025, reaching $459.73. Despite a 9.81% drop in the last seven days, ZEC’s 13.97% rise over the past month and 719.55% increase over the past year highlight strong investor confidence in the asset.

Grayscale’s Strategic Move to Expand Zcash Exposure

Grayscale submitted an S-3 registration statement with the U.S. Securities and Exchange Commission to convert its existing Zcash Trust into a spot ETF. This follows the same strategy the firm employed with its Bitcoin Trust, which became the first Bitcoin ETF in 2024. The proposed ETF would be the first in the U.S. to directly track Zcash and reflects growing demand for privacy-preserving digital assets.

The firm’s filing highlights the broader adoption of Zcash’s shielded transaction feature, with around 30% of ZEC transactions now using encrypted addresses. This adoption rate, combined with Zcash’s recent price performance, underscores a shift in market sentiment toward privacy-centric cryptocurrencies.

Zcash’s Position in a Volatile Market

Zcash’s rise outpaces major cryptocurrencies like bitcoin and ether, which have struggled to maintain consistent gains in 2025. The asset has gained traction as a functional digital cash alternative, especially in a year when broader crypto markets have faced turbulence. Grayscale’s filing suggests that Zcash is increasingly being viewed as a legitimate asset class within institutional portfolios.

Analysts project that if approved, the ETF could attract a new wave of investors seeking exposure to privacy-focused assets. The product may also serve as a benchmark for Zcash’s long-term viability in the financial ecosystem.

Privacy Coins Gain Institutional Recognition

The Grayscale filing marks a potential turning point for privacy coins, which have historically faced regulatory scrutiny and market skepticism. Zcash’s performance and growing institutional interest indicate a broader acceptance of encrypted transaction technologies. The proposed ETF could pave the way for other privacy-based assets to gain mainstream recognition and trading access.

With over a quarter of ZEC’s total supply now held in shielded addresses, Zcash is demonstrating strong utility beyond speculative trading. Institutional players may view the asset as a strategic addition to diversified crypto portfolios, particularly as digital privacy becomes a more pressing concern in financial services.

Market Implications and Regulatory Outlook

If approved, the Zcash ETF could influence the broader market by increasing liquidity and visibility for the asset. It may also pressure regulators to develop clearer frameworks for privacy coins, which remain a regulatory gray area in many jurisdictions. Grayscale’s successful conversion of the Zcash Trust into an ETF would set a precedent for future privacy-focused crypto products.

In summary, Grayscale’s filing reflects a strategic and forward-looking move by the asset manager to capitalize on Zcash’s growth and institutional adoption. As Zcash continues to outperform major cryptocurrencies, the proposed ETF could serve as a catalyst for wider market participation and regulatory clarity.