On December 1, 2025, ZEC saw its value plummet by 21.28% in just one day, settling at $342.47. Over the previous seven days, the cryptocurrency dropped by 36.16%, and over the past month, it decreased by 21.37%. Despite these recent setbacks, ZEC has soared by an impressive 497.97% over the past year, underscoring sustained interest in this privacy-oriented digital currency.
Grayscale has formally applied to the U.S. Securities and Exchange Commission (SEC) to transform its Zcash Trust into a spot exchange-traded fund (ETF). This move marks a significant milestone for both ZEC and the broader privacy coin sector. If approved, the ETF would be the first in the United States to directly track Zcash, following the model Grayscale previously used to convert its Bitcoin Trust into an ETF in 2024. Such approval would signal growing institutional interest in privacy-focused cryptocurrencies and represent a major advancement for the industry.
This regulatory filing follows a dramatic 1,000% surge in ZEC’s price during 2025. Experts attribute this growth to the increasing popularity of shielded transactions—a distinctive feature of Zcash that conceals transaction details such as amounts and participants. Currently, shielded pools are used in about 30% of all ZEC transactions, and between 20% and 25% of the total ZEC supply is stored in encrypted addresses. The expanding use of these privacy tools has helped Zcash evolve from a niche project into a practical digital cash alternative.
The proposed ETF is seen as both a result of and a catalyst for Zcash’s rising prominence in the cryptocurrency market. As demand for decentralized privacy solutions grows—particularly during periods of market instability—a Zcash ETF could provide both institutional and individual investors with a regulated, straightforward way to invest in the asset. Additionally, it would offer a transparent benchmark for Zcash’s performance within mainstream financial markets.
Grayscale’s initiative reflects a broader shift in the crypto landscape, where institutional frameworks are adapting to accommodate digital assets with unique features. Building on its previous success with Bitcoin, Grayscale’s focus on Zcash demonstrates its belief in the enduring value of privacy coins. Should the SEC approve the ETF, it would not only validate Zcash’s readiness for mainstream adoption but could also pave the way for similar products centered on other privacy-focused cryptocurrencies.