21Shares has launched Europe's first Zcash exchange-traded product, with trading beginning on Euronext Paris and Euronext Amsterdam on September 22. The physically backed fund holds actual Zcash tokens with BitGo serving as custodian and charges a 2.5% annual management fee.
The product trades in euros on the Paris exchange and in dollars on Amsterdam. On its first day, the fund held approximately $100,000 in assets with 5,000 securities outstanding and a net asset value of $20.04 per unit.
Fund Structure and Benefits
Both the Zcash product and a companion ETHFI fund launched the same day are physically backed, meaning they hold actual tokens rather than tracking futures contracts. This structure allows investors to gain cryptocurrency exposure through regular brokerage accounts without opening crypto exchange accounts or managing private keys, reducing the risk of lost coins.
The 2.5% annual management fee is higher than most Bitcoin and Ether products on the same exchanges, reflecting the less-frequent custody requirements for a privacy coin compared to more widely held assets.
Zcash Technical Background
Zcash is built on Bitcoin's code and maintains a 21 million coin cap, proof-of-work mining, and halving schedule. It differentiates itself through optional shielded transactions that hide sender, receiver, and transaction amounts, while Bitcoin and Ethereum remain transparent by default.
Last week, Zcash coinholders voted 98.9% to maintain the Bitcoin-style halving model rather than adopt a smoother issuance schedule.
Market Context
Zcash has gained more than 2,700% this year and holds a market value near $27.5 billion, making it the ninth-largest cryptocurrency by market capitalization. On Wednesday, the token reached an intraday high near $1,680 before declining approximately 6.6% to around $1,522.
The European listing follows Grayscale's Zcash ETF, which launched August 25 on NYSE Arca after converting a nine-year-old Zcash Trust. Grayscale's fund has attracted more than $233 million and holds close to $890 million in assets, with a 3-for-1 share split scheduled for September 30.
