ZEC Rises on ETF Hopes and Supply Squeeze

• Bitwise filed for a Zcash Strategy ETF combining direct holdings and European ETPs according to reports.
• Whale accumulation and shielded ZEC reduced supply, boosting prices to $537.
• Institutional demand grows as privacy coins gain traction amid regulatory scrutiny according to analysis.
• Technical analysis shows key resistance at $528, with Arthur Hayes predicting $1,000.

Zcash (ZEC) climbed to $537.45, reflecting strong momentum fueled by ETF filings and supply constraints. The privacy-focused token jumped 28.5% over the past week as institutional players like Cypherpunk Technologies accumulated significant holdings. This rally aligns with broader interest in privacy assets following Bitwise's SEC filing for a dedicated ZEC Strategy ETF in late 2025 according to filings. Market participants view these developments as key catalysts for sustained upward pressure.

What's Driving ZEC's Recent Price Surge?

Whale activity and reduced exchange supply are tightening ZEC liquidity. The top 100 addresses now control 66% of total supply, with over $31 million withdrawn from Binance alone according to reports. Roughly 30% of ZEC remains locked in shielded addresses, further limiting tradable tokens. This scarcity effect amplified price moves as demand increased from firms like Cypherpunk, which spent $29 million acquiring 56,418 ZEC tokens. Their strategy aims to hold 5% of total supply, cementing ZEC's role as a foundational privacy asset.

Institutional adoption accelerated through late 2025, with Grayscale reporting ZEC as a top performer. Bitwise's ETF proposal combines direct token exposure with European exchange-traded products, offering a regulated pathway for investors according to filings. The fund allocates up to 60% to direct ZEC holdings and at least 40% to ETPs tracking the token according to market data. This filing reflects growing confidence in Zcash amid rising surveillance concerns. Shielded transactions now represent 27% of supply, underscoring real-world utility according to market analysis.

What Are the Risks and Future Outlook for ZEC?

Regulatory uncertainty poses significant risks despite bullish momentum. The SEC could reclassify ZEC as a security, potentially forcing Bitwise's ETF to dissolve according to filings. European ETP exposure introduces counterparty default risk and valuation gaps due to time-zone mismatches according to analysts.Technical indicators show bearish signals, including CMF divergence and negative funding rates, with critical support at $500 according to technical analysis. A breakdown below this level might trigger a slide toward $301, highlighting volatility risks according to forecasts.

Arthur Hayes maintains a $1,000 price target, citing ZEC's hedge value against KYC/AML regulations according to market analysis. A golden cross pattern and ascending channel suggest bullish potential if ZEC breaks resistance at $551.76 according to technical indicators. Bitwise's ETF structure uses cash creations, potentially generating higher capital gains than traditional in-kind models according to filings. That said, ZEC's 817% annual gain in 2025 shows strong foundational demand according to reports. The token's trajectory hinges on ETF approval progress and sustained institutional accumulation amid regulatory headwinds according to market analysis.