Valour, a Nasdaq-listed subsidiary of DeFi Technologies, launches Zcash ETP

Valour launches ETP linked to Zcash, providing European investors with a new channel for compliant crypto asset allocation

DeFi Technologies Inc. Valour, the investment products arm of (NASDAQ: DEFT), has launched an exchange-traded product (ETP) linked to Zcash. The product provides European investors with a regulated investment path that allows them to gain market exposure to one of the best-performing cryptocurrencies of the past two years without directly holding the token.

Product Details and Market Background

Valour Zcash (ZEC) SEK ETP began trading on the Spotlight stock market in Sweden on September 29, with a management fee ratio of 1.9%. Through a standard brokerage account, investors can track the price trend of ZEC, thereby avoiding complex aspects such as crypto wallet settings and self-custody required to directly purchase tokens.

This issuance follows the most drastic price revaluation in the cryptocurrency market. ZEC's trading price hovered around $16 in 2024; on September 4, its price exceeded the $1,000 mark for the first time, resulting in the liquidation of short positions worth $34 million. Since then, ZEC has traded as high as US$1,500, an increase of more than 6,000% from the 2024 low, making it the most prominent privacy transaction target in this cycle.

Institutional packaging products appear one after another

At the same time, institutional encryption products have also been implemented one after another. In late August, Grayscale converted its nine-year-old Zcash trust fund into the United States 'first spot Zcash ETF and listed it on NYSE Arca under the ticker symbol ZCSH, bringing approximately US$300 million in capital to the market. This listing also provided support for the market's rise in September. Valour's ETP further expands such investment channels to European exchanges.

Technical advantages and application scenarios of Zcash

Zcash was launched in 2016 and is the first widespread application case of zk-SNARKs (a zero-knowledge proof technology). This technology allows transactions to be verified without revealing sender, recipient or amount information. Users can choose between "blocked" transactions that keep data private, or "transparent" transactions similar to standard blockchain transfers. As a native token of the network, ZEC is mainly used to pay transaction fees and conduct settlement.

Johan Wattenström, CEO of DeFi Technologies, said in the announcement: "Zcash represents one of the most early zero-knowledge cryptography applications in the digital asset space, and market interest in privacy-protecting blockchain infrastructure continues to grow."

Strong demand from the Nordic market

The issuer said that market demand mainly comes from local sources. Jacob Lindberg, chief revenue officer at Valour, said: "We have observed growing interest in ZEC from professional investors and Nordic retail investors. The market demand for tracking ZEC's listed products is very clear. Bringing Zcash to the Spotlight market allows investors to gain familiar market exposure through existing brokerage infrastructure without having to directly purchase, store or manage underlying digital assets."

About DeFi Technologies

DeFi Technologies is a Nasdaq-listed financial technology company committed to connecting traditional capital markets with decentralized finance (DeFi). Its subsidiary Valour issues exchange-traded products that track digital assets and has more than 100 ETP product lines covering major cryptocurrencies, Layer 1 and Layer 2 networks, DeFi protocols and pledged products.

The company previously reported second-quarter revenue of US$7.8 million. As of the end of the quarter, Valour's assets under management were approximately US$397 million, a decrease from the same period last year, mainly due to the overall downturn in the cryptocurrency market.