ZEC Rises 0.15% Following Grayscale’s Zcash ETF Application During 1,000% Surge

Grayscale Seeks to Launch First U.S. Spot Zcash ETF

Grayscale has submitted an application to transform its Zcash Trust into the first spot exchange-traded fund (ETF) in the United States that tracks Zcash (ZEC). This initiative highlights a growing interest from institutional investors in privacy-oriented cryptocurrencies. The announcement follows a remarkable surge in ZEC’s value, which has climbed over 1,000% since the beginning of the year, reaching $459.73 by November 30, 2025. Although ZEC experienced a 9.81% decline in the past week, its 13.97% monthly increase and a staggering 719.55% gain over the last year demonstrate robust investor confidence.

Expanding Institutional Access to Zcash

Grayscale’s recent filing with the U.S. Securities and Exchange Commission aims to convert its current Zcash Trust into a spot ETF, mirroring the approach it previously took with its Bitcoin Trust, which became the first Bitcoin ETF in 2024. If approved, this would mark the debut of a U.S.-based ETF directly tracking Zcash, reflecting heightened demand for digital assets that prioritize user privacy.

The application also points to the growing use of Zcash’s shielded transactions, with approximately 30% of all ZEC transfers now utilizing encrypted addresses. This trend, coupled with Zcash’s impressive price trajectory, signals a shift in market sentiment toward privacy-focused cryptocurrencies.

Zcash’s Performance Amid Market Volatility

In 2025, Zcash has outperformed leading cryptocurrencies such as Bitcoin and Ether, both of which have struggled to achieve steady growth. Zcash’s appeal as a practical digital cash alternative has grown, especially during a year marked by instability in the broader crypto market. Grayscale’s move suggests that Zcash is increasingly being recognized as a credible asset for institutional portfolios.

Experts believe that, if the ETF receives regulatory approval, it could attract a new segment of investors interested in privacy-centric assets. Additionally, the ETF could serve as a benchmark for evaluating Zcash’s long-term potential within the financial sector.

Institutional Embrace of Privacy Coins

Grayscale’s application may represent a pivotal moment for privacy coins, which have long faced regulatory challenges and skepticism. The strong performance of Zcash and the growing attention from institutional investors point to a wider acceptance of encrypted transaction technologies. The proposed ETF could open the door for other privacy-focused cryptocurrencies to achieve mainstream adoption and broader trading opportunities.

With more than 25% of ZEC’s total supply now stored in shielded addresses, Zcash is proving its value beyond mere speculation. Institutional investors may increasingly view Zcash as a valuable component of diversified crypto portfolios, especially as concerns about digital privacy intensify within the financial industry.

Potential Market Impact and Regulatory Developments

Should the Zcash ETF gain approval, it could boost both liquidity and visibility for the asset, while also prompting regulators to clarify their stance on privacy coins—a sector that remains largely undefined in many regions. A successful transition of the Zcash Trust into an ETF by Grayscale would set a significant precedent for future privacy-oriented crypto products.

Ultimately, Grayscale’s filing underscores a strategic effort to leverage Zcash’s momentum and growing institutional acceptance. As Zcash continues to outperform its peers, the proposed ETF could encourage broader market involvement and foster greater regulatory transparency.