Grayscale's Zcash fund began trading on NYSE Arca as the Zcash ETF under the ticker ZCSH. Billed by the firm as the world's first exchange-traded product offering spot exposure to Zcash, the fund carries an annual sponsor fee of 2.5%.
The product's predecessor originally launched as a private placement in October 2017 and its shares had been quoted on OTCQX since October 2021. Its registration statement became effective, and NYSE Arca certified the listing, allowing the fund to drop the Grayscale Zcash Trust name.
Ahead of the transition, shares traded at a 17% discount to net asset value on June 30, which narrowed to a 7% discount by August 12 and dropped to 1% by August 20. The trust reported a net asset value of $155.2 million at the end of June, with holdings representing approximately 2.3% of the circulating ZEC supply.
Coinbase Custody Trust Company serves as the custodian holding the fund's ZEC, while Foreside Fund Services acts as the marketing agent.
The prospectus includes a warning that Digital Currency Group (DCG), Grayscale's parent company, could potentially own a majority of the shares. A DCG subsidiary, DCG International Investments, has been in discussions to acquire shares through an authorized participant in exchange for approximately 200,000 ZEC. However, the talks remain non-binding.
Zcash launched in 2016, featuring a 21 million coin supply cap and proof-of-work consensus alongside optional transaction privacy. The asset recently traded near an eight-year high, reaching approximately $880 prior to the ETF listing.
