Grayscale filed to convert its Zcash Trust into a spot ETF. Despite this landmark step, Zcash (ZEC) experienced a price drop.
Crypto asset manager Grayscale filed a registration statement. This was with the US Securities and Exchange Commission (SEC) on Wednesday, November 26, 2025. The inclusion of filing is to transform its Zcash Trust (ZCSH) into a spot ETF. If it is approved, it will be a significant milestone. It would be the first-ever ETF dedicated to the privacy coin Zcash and listed in the US.
Grayscale Files for First Spot ZEC ETF Amid Price Dip
According to CoinMarketCap, Zcash (ZEC), one of the leaders of the privacy industry, was trading at $503 on Wednesday, November 26. This brought its market capitalization to 8.29 billion. This is down from its YTD peak of $11.4 billion. This drop came in spite of the news from the ETF.
We’ve filed the ZCSH Form S-3 – an important step required to launch the first ZEC ETPs.
Zcash launched in 2016. Seeing the potential of the Zcash protocol, we launched Grayscale Zcash Trust (Ticker: ZCSH) as a private placement in 2017.
— Grayscale (@Grayscale) November 26, 2025
Zcash (ZEC) has experienced a huge price drop. This followed a large rally. After peaking at close to $750, its price dropped more than 35%. There is, however, optimism about its long-term potential among analysts. Currently, it is trading at approximately $520. This correction was affected by different factors. These include profit taking and larger market volatility.
Grayscale reported the filing on X (formerly Twitter). They have filed the ZCSH Form S-3 – that’s an important step needed to move the first ZEC ETPs forward,” Grayscale stated. Zcash launched in 2016. Seeing the potential, Grayscale launched a private placement called Grayscale Zcash Trust (Ticker-ZCSH) in 2017.
Related Reading: Zcash News: Reliance Global Shifts Entire Digital Treasury Into Zcash | Live Bitcoin News
Zcash price fell even with the S-3 form filing by Grayscale. This form will allow it to convert its trust to an exchange-traded fund. This is an important step. ZCSH will be the first Zcash ETF in the business.
Market Concerns and Volatility Despite ZEC ETF Potential
Converting the Grayscale Zcash Trust to an ETF would increase institutional influence. Some critics fear this to be a “Wall Street takeover” of this privacy coin. This is an important concern.
Redemption Concerns are also present. When the Grayscale Bitcoin Trust (GBTC) became an ETF, redemptions generated extreme sell-side pressure on the price of Bitcoin. The fear is that a similar wave of redemptions could hit Zcash. The Grayscale Zcash Trust was already trading at a huge discount. Some of the others saw this as an early sign of expected pressure.
Historical Price Volatility is also important to point out. Zcash has an extreme history of volatility. It has declined far from its all-time high of almost $6,000. To get to a new high it would need way more utility and interest. This is beyond the ETF announcement.
The ensuing reaction by the market to ZEC ETF filing brings out some complex dynamics. While ETF approval usually leads to an increase in asset prices, the unique position of Zcash as a privacy coin sets unique considerations. The regulatory scrutiny and fear of a “Wall Street takeover” may deter some investors.
The potential for redemptions from the existing trust is also a source that could create selling pressure. This happened with GBTC. This may temporarily jog any positive momentum from ETF approval. These are likely factors that investors are watching closely.