Grayscale debuts first Zcash ETF of its kind as privacy coin surges

There is a new crypto exchange-traded product on the block. On Tuesday morning, Grayscale launched the first ETF to offer direct exposure to Zcash, the privacy-focused cryptocurrency.

Grayscale debuted the Zcash ETF under the ticker symbol ZCSH on NYSE Arca. Zcash launched in 2016 and is known for its privacy features.

The new ETF is a conversion of Grayscale's Zcash Trust. The fee for the ETF is 2.5%, and the revenue generated from that fee will be directed back to the Zcash ecosystem to promote and bolster the network and its broader development, a Grayscale spokesperson said. 

In a statement on Tuesday, Grayscale Head of Index Steve Vanourny linked privacy to the rise of artificial intelligence. 

"As AI reshapes how financial activity can be monitored, we believe demand for genuine financial privacy will only grow," Vanourny said. "With ZCSH, Grayscale is building on its history of industry firsts by giving investors a way to gain exposure to one of the market's leading privacy-focused assets."

"We believe Zcash has a compelling long-term role to play and are proud to make its token accessible through the exchange-traded product structure investors already know," Vanourny added.

Over the past few days, Zcash's value has soared by 45%, according to The Block's price data page, hitting a rally ahead of Grayscale's move to submit its fifth amended registration statement before the weekend. An earlier amendment to the Zcash ETF also revealed that a subsidiary of Grayscale's parent company, Digital Currency Group, is considering acquiring about 200,000 ZEC through the trust. 

As of Monday, the Zcash Trust had over $313.5 million in assets under management. 

Grayscale has converted several of its trusts to ETFs over the years, including, infamously, its Grayscale Bitcoin ETF and Grayscale Ethereum ETF after a long-running court battle with the Securities and Exchange Commission under the former administration. The company has also since converted and launched funds tracking XRP, Solana, Litecoin, among others.