Grayscale has officially filed an S-3 registration statement with the SEC aimed at converting its current trust into a spot Zcash ETF. This strategic move coincides with an impressive rally for the asset, which has multiplied its value by ten in recent months, as detailed in the regulatory documentation submitted by the asset manager.
On the other hand, the price of Zcash performance has been extraordinary, rising from approximately $73 in October to a high of $736 on November 7. After two failed attempts to break that critical resistance, the asset experienced a technical correction towards the $500 level, holding firm in the capitalization rankings. Recent data from analytics firm OurNetwork confirms the network recorded its most active week of 2025, evidencing a 197% increase in weekly transfers.
Will privacy be enough to convince US regulators to approve this fund?
Likewise, the filing highlights the fundamental difference between Bitcoin and this protocol, which focuses on selective privacy using zk-SNARKs cryptography. Although exchange-traded funds have already been approved for assets like XRP, SOL, and HBAR, the anonymous nature of this project poses a unique regulatory challenge in United States markets. However, the recent integration of the Zashi wallet with the NEAR Intents protocol greatly facilitates access and use of the blockchain for everyday users.
Furthermore, Cypherpunk Technologies, a digital asset treasury backed by the Winklevoss twins, plans to acquire up to 5% of the token’s total supply. They currently hold 1.4% of the circulating supply, which could generate persistent and significant buying pressure as they scale toward their stated goal. The firm has invested approximately $68 million to date, with an average cost basis of $291 per unit, demonstrating long-term institutional conviction.
Will institutional demand be enough to push the price to $1,000?
Market interest is also reflected in the listing of perpetual futures on Hyperliquid and the availability of wrapped tokens on high-performance networks. In this way, investors now have multiple avenues to gain exposure to the asset, which strengthens the overall liquidity and accessibility of the ecosystem. These technical integrations are crucial to sustaining demand beyond pure price speculation.
Consequently, the combination of regulated financial products and aggressive institutional accumulation sets the stage for a potential bullish continuation in the medium term. If momentum continues and regulatory hurdles do not stall progress, algorithmic projections placing the asset at $1,000 by the second quarter of 2026 could prove conservative. The market remains attentive to the SEC’s resolution and the evolution of privacy in the financial sector.
