Grayscale targets Zcash ETF as DCG negotiates 200,000 ZEC contribution

If it's not private, it's not safe. Edward Snowden did not foresee Wall Street. The man who made Zcash his reference cryptocurrency in 2017 now sees Digital Currency Group negotiating the contribution of around 200,000 ZEC to a fund that Grayscale wants to transform into an ETF listed on the NYSE Arca. The manager filed its fourth amendment to Form S-3 on August 18, one more step towards a listing under the ZCSH ticker for crypto's most discreet token.

DCG in discussions to provide 200,000 ZEC for shares

According to Crypto Briefing, DCG International Investments, a subsidiary of Digital Currency Group, is holding non-binding discussions to contribute approximately 200,000 ZEC to Grayscale's Zcash Trust, in exchange for shares in the fund.

At current prices, the contribution would represent approximately $110 million. Nothing is signed: DCG could ultimately bring more, less, or no ZEC, and both parties remain free to withdraw from the negotiations at any time.

In detail, the operation would follow an in-kind creation mechanism, where the contributor receives shares of the Trust directly against his tokens rather than cash. A classic practice at Grayscale, already used for its other crypto vehicles.

A fourth amendment S-3 to target the ZCSH ticker

The August 18 filing specifies the architecture of the future listed product. The shares would be issued continuously in baskets of 10,000, via authorized participants, with creations possible in cash or in kind thanks to the ZECs provided. Repurchases in kind are not planned. Only cash outings would be permitted. Coinbase would act as prime broker and Coinbase Custody Trust Company as custodian of the tokens, while Bank of New York Mellon would act as transfer agent and fund administrator, according to the SEC filing.

The registration remains subject to review by the American regulator and is not yet effective. Indeed, Grayscale hopes for a listing on the NYSE Arca, the same place where the manager has already listed several of its crypto funds converted into spot ETFs.

The rally that made ZEC attractive for institutional investors

The timing is no coincidence. ZEC went from just over $40 in May 2025 to around $540 a year later, an increase of almost 1,200%, driven in particular by the closure without follow-up of the SEC investigation into the Zcash Foundation.

The privacy token, long relegated to the margins of the market, found itself propelled among the best performers of the year, to the point of attracting the attention of a listed asset manager and a subsidiary of one of the largest crypto holdings in the sector.