ZEC Down 14.03% Amid ETF Filing and Buterin’s Privacy Warning

Grayscale has filed with the U.S. Securities and Exchange Commission to convert its Zcash Trust into the first U.S. spot ETF tracking Zcash (ZEC). The move, announced on November 26, 2025, reflects the firm’s belief in the growing demand for privacy-focused cryptocurrencies as ZEC surges in 2025. The proposed ETF would be the first Zcash product listed in the U.S. and could represent a turning point for privacy coins in institutional markets.

Zcash, once considered a niche privacy coin, has gained significant traction, with shielded transactions—Zcash’s encrypted method of transferring value—now accounting for roughly 30% of all ZEC activity. The privacy coin’s adoption has grown alongside its price performance, which has outpaced major cryptocurrencies like Bitcoin and Ether over the past year. However, the recent filing comes as ZEC faces a sharp pullback, with prices declining by 14.03% in the last 24 hours and 30.2% over seven days as of December 1, 2025.

The ETF filing builds on Grayscale’s successful conversion strategy seen with its Bitcoin Trust. The firm’s Zcash Trust has long served as a vehicle for institutional investors seeking exposure to the privacy coin, and the proposed ETF conversion aims to make that access more liquid and tradable. If approved, the ETF would provide a regulated and transparent avenue for investors to allocate capital into ZEC, potentially broadening its appeal in mainstream financial markets.

Analysts project that the approval of a Zcash ETF could accelerate adoption by legitimizing the asset class and attracting a new wave of institutional capital. However, the filing also arrives amid heightened bearish pressure on ZEC, which is currently trading below $400 and has seen increased selling activity in the past week. The coin is now at risk of testing the $300 support level, a key psychological threshold that has been previously breached.

Adding to the bearish sentiment is a recent warning from Ethereum co-founder Vitalik Buterin. He cautioned the Zcash community against proposals that could weaken the coin’s privacy features through token-based governance mechanisms. Such concerns may weigh on investor sentiment, particularly among those who value Zcash for its strong encryption and shielded transactions.

Despite the recent volatility, Zcash remains up 553.81% year-to-date, a performance that underscores its role as a high-growth privacy asset in a broader crypto market that has struggled in 2025. The Grayscale filing and Buterin’s comments highlight the evolving narrative around Zcash: from an experimental privacy tool to a potential cornerstone of the digital cash ecosystem.