Grayscale’s Zcash Trust is scheduled to begin trading on NYSE Arca on or about August 25 under the ticker symbol ZCSH. The move marks a transition from its previous home on the OTCQX marketplace into a spot ETF structure featuring continuous share creation and redemption.
Historically, the trust traded on the OTCQX marketplace—where it originally launched on October 18, 2021—experiencing premiums as high as 240% and discounts as deep as 55% relative to its net asset value. The new structure aims to help close the gap between the market price of the shares and the actual value of the underlying assets through an arbitrage mechanism enabled by authorized participants Jane Street Capital and Virtu Americas.
Fund Holdings and Structure
The trust currently holds between 391,000 and 393,000 ZEC, representing more than $260 million in assets under management. Coinbase Custody acts as the custodian for the underlying digital assets, while the annual sponsor fee is set at 2.5%.
Grayscale advanced the regulatory process by filing multiple SEC amendments, including its fourth amendment on August 18 and a fifth amendment on August 21. Additionally, Grayscale parent company DCG has been in discussions to contribute approximately 200,000 ZEC to the trust, with that stake valued between $110 million and $163 million depending on the price window.
Market Activity
Ahead of the listing, ZEC surged above $800 with peaks approaching $850 in mid-to-late August, marking a 38% to 48% increase over a compressed timeframe. Futures trading volume for ZEC also climbed to nearly $10 billion as derivatives traders positioned around the launch.
While the 2.5% annual fee creates a notable long-term cost for investors, market participants note that Grayscale has previously reduced fees on other products facing competitive pressure following spot ETF conversions.
