Winklevoss Asset Services has filed a registration statement with the U.S. Securities and Exchange Commission to launch a spot zcash ETF on Nasdaq under the ticker symbol WINK. The proposed fund would offer direct price exposure to zcash (ZEC) through a structure in which the trust holds actual ZEC rather than derivatives.
The filing represents the Winklevoss twins' latest expansion of their institutional cryptocurrency strategy beyond bitcoin and ether. The spot zcash product directly competes with Grayscale's zcash offering, which launched in August.
Fund Structure and Operations
According to the filing, the trust's primary objective is to provide public investors with direct price exposure to zcash minus operational expenses. Gemini Trust, an affiliate of the sponsor, will hold all ZEC holdings in segregated cold storage.
The fund will operate using a cash-based creation and redemption model. Authorized participants will deposit cash to subscribe for share baskets, which the trust will use to purchase ZEC. Upon redemption, participants receive cash proceeds.
Ecosystem Partnership and Initial Interest
Winklevoss Asset Services has established an agreement with Cypherpunk Technologies, a crypto treasury firm holding approximately $440 million in ZEC, to serve as the Zcash Ecosystem Partner. Cypherpunk will provide technical guidance and advisory services, as well as facilitate coinholder polling on protocol developments.
Winklevoss Capital Fund has indicated nonbinding interest in purchasing up to $100 million in shares upon launch, either from authorized participants or through secondary market channels.
The offering remains subject to SEC review before trading can commence on Nasdaq.
