Grayscale filed an S-3 with the SEC to convert its Grayscale Zcash Trust into a spot Zcash ETF, with a potential listing on NYSE Arca under the ticker ZCSH. The announcement reignited expectations that the price of ZEC could surpass $600, amid a broader product expansion strategy and shifting market dynamics. The move carries implications for liquidity, compliance, and institutional demand, positioning Zcash within an evolving regulated ETF framework.
Grayscale filed with the SEC the formal intent to transform its fund into a spot ETF via an S-3, a regulatory filing that enables the offering and listing if it receives regulatory approval; the product could be listed on NYSE Arca under the ticker ZCSH.
The trust in question held approximately 394.400 ZEC, valued at around $199,2 million as of November 25, 2025, and it suffered a 19,71% drop after the filing was announced, underscoring the immediate market sensitivity to regulatory developments.
The firm had already launched spot ETFs for Dogecoin and XRP on November 24, 2025 and has filed applications for other assets such as Avalanche and Solana, evidencing a sustained strategy to expand its range of crypto ETFs and diversify its product lineup.
Zcash offers optional privacy through zero-knowledge proofs (zk-SNARKs), a method that allows verifying transactions without revealing underlying details; unlike coins with full privacy, Zcash allows view keys for selective disclosure, a feature designed to facilitate regulatory compliance.
Impact on price and risks for investors and compliance
The market reacted with volatility: ZEC registered a cumulative rally of up to 1.000% in recent months and, after Grayscale’s filing, fell below $500 in the immediate reaction, although some analysts estimate that an upside breakout could place the price above $600 and generate around $19,43 million in short position liquidations.
A relevant catalyst is the halving scheduled for November 2025, which reduces the block reward from 3,125 ZEC to 1,5625 ZEC, increasing the theoretical scarcity of the asset and shaping supply dynamics around the proposed ETF conversion.
Risks include regulatory uncertainty —the SEC retains decision-making authority—, the possibility of supply centralization if large institutional vehicles concentrate positions, and technical vulnerabilities associated with the implementation of zero-knowledge proofs and risks linked to the initial configuration of the protocol.
Some valuation models indicate a “fair value gap” between $430 and $353 that could act as downside support, even under extreme scenarios projecting severe declines, informing risk management considerations for market participants.
