Grayscale Plans 3-for-1 Zcash ETF Split After $233 Million Inflow

Zcash, or ZEC, is a privacy-focused cryptocurrency that has historically been difficult for US investors to access through conventional brokerage accounts. Grayscale’s exchange-traded fund offers direct exposure to the token through a regulated securities wrapper, marking a significant step for privacy coins seeking broader institutional acceptance. The debut also follows heightened scrutiny of Zcash after a critical privacy flaw and an alleged “infinite mint” risk unsettled the network and its investors.

Grayscale launched the first ETF investing directly in Zcash on Tuesday morning, Aug. 25, after filing a fifth amended S-3 registration statement with the US Securities and Exchange Commission. Digital Currency Group had also been in talks to contribute 200,000 ZEC to the fund. ZEC climbed more than 45% and extended its rally to roughly 60%, reaching an eight-year high, before pulling back about 8% as the ETF began trading.

Bitcoin’s public ledger ensures verifiability, but its transaction records can be traced using AI and on-chain analytics tools. Zcash, launched in 2016, uses zero-knowledge proofs to conceal counterparties and transaction amounts. Financial privacy has therefore become central to its positioning as an alternative to Bitcoin.

On May 12, 2026, Maelstrom Chief Investment Officer Arthur Hayes said he had sold some Bitcoin and bought ZEC instead. Grayscale filed an S-3 with the SEC on May 8 seeking to convert its Zcash trust, which held more than $200 million, into a spot ETF listed on NYSE Arca under the ticker ZCSH. ZEC was trading at about $597 at the time, having risen more than 1,400% over the previous year.