ZEC drops 4.8% after Grayscale submits initial Zcash ETF application in the U.S.

Grayscale Seeks SEC Approval to Transform Zcash Trust into First U.S. Spot Zcash ETF

Grayscale Investments has submitted an application to the U.S. Securities and Exchange Commission (SEC) to transition its current Zcash Trust into what could become the nation’s inaugural spot exchange-traded fund (ETF) dedicated to Zcash (ZEC). This strategic move comes amid a remarkable 1,000% surge in ZEC’s price since the start of the year and a noticeable uptick in interest for privacy-oriented cryptocurrencies. Should the SEC grant approval, this ETF would represent a pivotal development for institutional involvement in privacy coins, reflecting a growing appetite for alternatives to conventional digital currencies.

Zcash, recognized for its privacy-enhancing features, has seen over 30% of its transaction volume in 2025 processed through shielded pools—its proprietary encrypted transaction system. This steady adoption highlights ZEC’s evolution into a more robust and practical digital asset. Grayscale’s latest ETF proposal mirrors its previous approach with the Bitcoin Trust, which successfully transitioned into an ETF in 2024.

Industry Trends and Market Performance

This initiative is part of a broader movement within the crypto sector toward products tailored for institutional investors. While the overall crypto market has faced challenges—such as a $55 billion decline in total value locked (TVL) in DeFi since October, largely due to falling asset prices—Zcash has bucked the trend. In 2025, ZEC has outperformed both bitcoin and ether, soaring by more than 1,000% and demonstrating resilience compared to its peers.

Potential Impact of a Zcash ETF

Market analysts believe that the introduction of a Zcash ETF could open the door to increased participation from both institutional and retail investors, especially those interested in privacy-focused digital assets. Such a product would also align ZEC with other leading cryptocurrencies in terms of tradable investment options, potentially enhancing its visibility and appeal in international markets.

Regulatory Landscape and Future Outlook

Grayscale’s application also points to ongoing progress in the regulatory environment for crypto ETFs. The SEC is currently evaluating other proposals, including a spot BNB ETF from VanEck. Although regulatory approval remains uncertain, the rising number of ETF submissions suggests a shift in both investor sentiment and regulatory engagement with digital assets.

As of November 30, 2025, ZEC was trading at $436.87, reflecting a 5.14% decrease over the previous 24 hours and a 14.57% drop in the past week. Despite this recent volatility, the token has advanced 7.96% in the last month and boasts a 676.29% gain over the past year.