Grayscale Updates S-3 Filing for Zcash ETF
Grayscale has submitted amendment no. 5 to its S-3 registration statement with the US SEC for its proposed Zcash ETF, alongside an 8-K filing confirming plans to convert the Grayscale Zcash Trust into a spot exchange-traded fund. The issuer aims to list the shares on NYSE Arca under the ticker ZCSH on or about August 25, though the filing notes that there is no assurance the shares will trade on the anticipated timeline or at all.
The updated filing reveals a management fee of 2.5%, payable in ZEC, with no fee waiver announced. Grayscale stated it intends to use 100% of the sponsor's fee received from the trust for up to 12 months following the registration statement's effectiveness for marketing activities supporting the trust and initiatives aiding the development, marketing, and education of the Zcash Network.
The filing retains language indicating that in-kind redemptions are not permitted at this time. Additionally, the issuer continues discussions with DCG International Investments Ltd regarding a potential contribution of 200,000 ZEC in exchange for shares.
ZEC Price Rally and Derivatives Market Activity
Following the updates, ZEC's price rose more than 7% over a 24-hour period to trade at $842, having recorded a 24-hour low of $784 and a high of $885.42. Despite the price increase, 24-hour trading volume decreased by nearly 8%.
Derivatives data from CoinGlass revealed a 12% increase in total ZEC futures open interest to $1.91 billion over 24 hours, allowing ZEC to surpass Dogecoin (DOGE) and BNB. Futures open interest grew across several major exchanges, climbing nearly 8% on Binance, 17% on Hyperliquid, 12% on OKX, and 15% on Bybit.
