Grayscale Zcash ETF is approaching launch, ZEC prices soar 9%

Key Points

ZEC prices have increased, Gray submitted a revision application for Zcash ETF, and still plans to list under the ZCSH code.

DCG International Investment may acquire 200,000 ZECs, but the negotiations are non-binding.

ZEC prices rose nearly 10% in 24 hours, trading close to $555.

Gray has filed another revised registration statement with the U.S. Securities and Exchange Commission regarding its planned Zcash fund conversion. The grayscale Zcash ETF will replace the existing trust structure and trade under the ZCSH symbol on the Arca section of the New York Stock Exchange. The application also introduces new creation and redemption procedures for the proposed product.

Meanwhile, ZEC prices rose nearly 10% to about $555 in 24 hours. Its market value reached approximately US$9.4 billion during this period.

This submission advanced the review process but did not ensure approval. The SEC must declare the registration effective before Gray Scale can complete its listing and start full exchange trading.

However, the price targets and technical levels presented in this article are based on possible market scenarios reflected in technical analysis. They are not guarantees and should not be regarded as accurate predictions of future performance.

Given the risks and volatility associated with cryptocurrencies, readers should independently evaluate information and seek professional advice before making investment decisions.

Grayscale Zcash ETF Application Document| Source: U.S. SEC

Gray Zcash ETF applies to increase cash operating mode

The latest Zcash ETF application documents explain how authorized participants create and redeem stock baskets. Cash orders will use a third-party liquidity provider to purchase or receive the underlying ZEC.

The SEC filing also outlines physical transactions involving direct ZEC transfers. Its implementation depends on regulatory licensing and participating companies. When direct cryptocurrency transfers face operational or compliance restrictions, cash processing provides another avenue.

Gray listed Jane Street Capital and Virtu Americas as authorized participants supporting cash orders. Liquidity providers will handle relevant ZEC transactions rather than authorized participants.

The proposed grayscale Zcash ETF will issue and redeem shares in a basket. Gray reserves discretion to restrict cash creation or approve cash redemption on a case-by-case basis. Such restrictions may affect liquidity or cause stock prices to deviate from net asset value.

This application does not provide a release date. At the same time, the sponsorship fee column is left blank, which means that investors cannot yet compare their final cost to competitive cryptocurrency products.

DCG subsidiaries consider large ZEC investment

The revised document discloses negotiations involving international investment in DCG, a subsidiary of Grayscale's parent company Digital Currency Group. The company is considering investing approximately 200,000 ZECs through trusts.

Based on current ZEC prices, this amount is worth approximately US$110 million. These discussions do not constitute binding purchase commitments. According to the documents, the investor may purchase more, less, or no tokens at all.

A deal of this size could make the DCG subsidiary a major shareholder. Gray warned that concentration of shares could reduce the voting influence of other holders. Large positions may also affect secondary market liquidity after the proposed New York Stock Exchange Arca listing.

The Grayscale Zcash ETF program aims to broaden access channels beyond current OTC trusts. Exchange listings allow brokerage customers to gain ZEC exposure without having to manage wallets or private keys. Coinbase Custody will hold the base token, and Bank of New York Mellon will provide administrative and transfer agency services.

Grayscale Zcash ETF discloses Orchard cyber risks

Grayscale Zcash ETF revision adds details about the Orchard blocked pool vulnerability disclosed in June. Developers addressed the flaw through an emergency network upgrade. They said the likelihood of exploiting the vulnerability was low, but Zcash's privacy features prevented conclusive verification.

Zcash subsequently activated the Ironwood upgrade on July 28, 2026. Ironwood eliminated Orchard and introduced a new shielded pool. A gate mechanism limits withdrawals to verifiable deposit amounts, preventing any forged ZECs from leaving obsolete pools.

This disclosure is critical to the Zcash ETF application because the trust directly holds the asset. A network defect, supply issue or another emergency upgrade could affect custody, valuation, and ZEC prices. The document juxtaposes these risks with market manipulation, liquidity and regulatory issues.

Zcash (ZEC) Price| Source: CoinGecko

At the same time, ZEC prices rose nearly 10% in 24 hours, trading close to $555. The market value of the token is close to US$9.4 billion. CoinGecko data shows that ZCSH trading volumes have been below $5 million since June. During November 2025, its trading volume exceeded US$23 million.