ChainCatcher reports that Grayscale has submitted an application for a Zcash spot ETF, converting its existing Zcash trust into a spot product, making it the first privacy coin ETF seeking listing in the United States. Meanwhile, Multicoin Capital disclosed that it has been steadily accumulating ZEC since February; co-founder Tushar Jain linked this investment thesis to proposed U.S. wealth tax legislation, arguing that increased government surveillance of private financial holdings will drive structural demand for assets shielded at the mathematical level. However, the application raises institutional custody challenges: approximately 30% of Zcash’s supply resides in shielded address pools—the highest level in history—yet ETF custody almost certainly requires the use of transparent address pools to meet audit and proof-of-reserves requirements. Previously, the SEC concluded its long-term review of Zcash in January 2026 without taking enforcement action, significantly reducing regulatory uncertainty.
Grayscale Submits First Spot ETF Application for a Privacy Coin, Zcash
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Summary
Grayscale has filed an ETF application for Zcash (ZEC), the first privacy coin seeking a U.S. spot ETF listing. The firm plans to convert its existing Zcash trust into a spot product. Multicoin Capital has been accumulating ZEC since February, citing potential impacts from U.S. wealth tax proposals. Zcash’s 30% supply held in shielded pools presents custody and audit challenges. The SEC completed its review of Zcash in January 2026 without enforcement, alleviating regulatory concerns. While Bitcoin ETFs have dominated recent headlines, this move signals broader interest in crypto assets.
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