Grayscale has filed for a Zcash ETF that would pay shareholders every two weeks, marking a significant expansion of the privacy coin's ETF offerings. The filing reached the U.S. Securities and Exchange Commission (SEC) on September 25 and could take effect 75 days later, in early December. According to the latest filing, the proposed ZCSH High Income ETF will not hold Zcash (ZEC) directly, instead trading options tied to Grayscale's existing spot fund. The fund copies ZCSH's price moves by pairing bought call options with sold put options, then selling short-dated calls, mostly one month or less, to collect premiums that fund the payouts. At least 80% of net assets must sit in options on Zcash exchange-traded products, though the filing notes that 'high income' promises no set yield and some payouts could simply return part of an investor's own money.
Zcash price has gained approximately 102% over the past month, trading near $1,535 as co-founder Eli Ben-Sasson reaffirmed his $5,000 year-end forecast for ZEC. According to recent reports, Ben-Sasson stated his $5,000 year-end prediction remains on track after ZEC passed his earlier $1,200 target during the September rally. The cryptocurrency recently traded above $1,600 before pulling back toward the $1,500 level, with the daily chart showing $1,625 above ZEC and $1,500 at the nearest marked level below its recent high. At the current price level, a move to $5,000 would require ZEC to rise about 226%, though Ben-Sasson's post did not identify a specific price model or sequence of levels leading to that target.
Grayscale's Zcash ETF (ZCSH) reached $1 billion in assets under management on September 24, marking a significant milestone just 16 days after surpassing $500 million. However, as reported by AMBCrypto, only $306.12 million in cumulative net inflows came from new investor money, with the remainder attributed to Zcash's sharp price appreciation and the fund's pre-existing ZEC holdings inherited from the Grayscale Zcash Trust. The ETF's growth was primarily fueled by ZEC's price doubling since the fund began trading, with the cryptocurrency trading at $1,533 after a 92% increase over the past 30 days. This surge coincided with Europe's launch of the first physically-backed Zcash ETP by 21Shares, creating a dual market momentum that drove both products' performance. By the week ending September 18, assets hit $914.5 million after $271 million in cumulative inflows, with that week's $98.2 million haul leading all crypto ETFs, as reported by BeInCrypto.
The proposed income ETF's structure presents both opportunities and limitations for investors. Selling calls caps the upside, as if ZEC rallies past the chosen strike price, the fund misses those gains, while it still absorbs the full drop when prices fall. The options market remains relatively new, with ZCSH beginning trading on August 25 and its options following on September 8. Grayscale also flags a potential conflict, as an affiliate of the fund's adviser sponsors ZCSH and earns its fee, which Yahoo Finance lists at 2.50%. The filing notes that the new fund's trading could lift ZCSH demand and, indirectly, that affiliate's fees. Similar income products already exist for Bitcoin, with Grayscale running a Bitcoin covered call ETF and Goldman Sachs filing a Bitcoin premium income fund in April. The new fund's ticker, exchange, fees, and sub-adviser remain blank in the current filing.
According to reports from TechFlow, Cointelegraph, and Crypto.news, 21Shares launched the region's first exchange-traded product tied to Zcash, extending the privacy coin's reach into regulated markets following its strong performance over the past year. The issuer announced both products on Tuesday, identifying them as the 21Shares Zcash ETP (ZCASH) and the 21Shares EtherFi ETP (ETHFI). The 21Shares Zcash ETP (WKN A4AXHY) has been trading on Euronext in Amsterdam and Paris since September 22, 2026, carrying the ISIN CH1608218801 and the German securities identification number WKN A4AXHY. Both products carry 2.5% annual fees and trade in euros in Paris and U.S. dollars in Amsterdam. The 21Shares Zcash ETP (WKN A4AXHY) has been trading on Euronext in Amsterdam and Paris since September 22, 2026, carrying the ISIN CH1608218801 and the German securities identification number WKN A4AXHY. Both products carry 2.5% annual fees and trade in euros in Paris and U.S. dollars in Amsterdam. The issuer's product pages list September 21 as the inception date for both securities, with each product beginning with 5,000 securities outstanding and early reported assets under management standing near $100,000 apiece. The European launch represents the first Zcash ETP in Europe, expanding regulated crypto investment access after the recent U.S. Grayscale Zcash ETF debut.
According to TechFlow, Cointelegraph, and Crypto.news, Zcash emerged as one of the crypto market's standout performers, recently briefly surpassing $1,500 and gaining nearly 1,100% over the past year, increasing market interest in it as a Bitcoin alternative. The token had gained more than 30% over seven days and roughly 77% over 30 days at the latest reading. 21Shares reported that the privacy coin sector had grown nearly fivefold within one year, from approximately $6.2 billion to around $30 billion using the firm's sector dataset. The company's September 22 research placed Zcash at roughly $20 billion in market capitalization when the analysis was prepared. The recent surge has been accompanied by nearly 1,100% annual gains, increasing institutional and mining sector interest and fueling debate over Zcash's potential as a Bitcoin alternative. Fortitude Digital Mining has emerged as a significant player, telling Cointelegraph that it mines about 28% of all ZEC produced in the first half of 2026, citing Zcash's proof-of-work model, capped supply and privacy features as key network strengths. ZEC hit a 24-hour high of $1,658.86 before sliding back below $1,530, demonstrating the coin's continued strength following the ETP launch.
According to AMBCrypto, the broader crypto ETF market highlighted positive investor sentiment during the week ending September 24. Bitcoin ETFs attracted the most capital with $2.25 billion in inflows, while Ethereum ETFs followed with $602.94 million. Meanwhile, XRP ETFs brought in $52.95 million, Solana ETFs attracted $101.55 million, and Hyperliquid ETFs recorded $6.02 million in inflows. The positive momentum coincided with Grayscale's Zcash ETF reaching its $1 billion milestone, though as noted by AMBCrypto, this surge was primarily driven by ZEC's price appreciation rather than fresh investor inflows. The 21Shares Zcash ETP is a small product for now with 5,000 securities outstanding and around $100,000 in fund assets on launch day, representing an opening balance rather than an established product size. The product trades differently from established Bitcoin ETPs, with two market makers quoting bid and ask continuously to secure pricing even when turnover is low, though the spread between quotes is typically wider for small and volatile underlyings. Additionally, Zcash developers have set an Oct. 6 testnet activation target for Network Upgrade 7 (NU7), with mainnet activation targeted for November 5. The upgrade includes reducing the target time between blocks from 75 seconds to 25 seconds, with nearly 99.9% of participating ZEC holders supporting the faster block target in a September poll.
According to TechFlow, Cointelegraph, and Crypto.news, the European launch follows the August 25 debut of Grayscale's Zcash ETF on NYSE Arca under ticker ZCSH. Grayscale converted its existing Zcash Trust into the first U.S.-listed Zcash ETF with direct ZEC exposure, with NYSE Arca formally certifying the fund for listing on August 24. A later SEC filing showed that Digital Currency Group invested approximately $100 million in the ETF on September 8, with DCG exchanging 85,705.32563297 ZEC through an authorized participant for ETF shares. Grayscale announced a 3-for-1 forward split for ZCSH following the rise in ZEC and the fund's share price, with shareholders of record at the close of trading on September 28 receiving two additional shares for every share held. Grayscale's head of research Zach Pandl argues that Zcash may benefit from second-mover advantages that help it challenge Bitcoin's network effects, a hurdle that earlier alternatives such as Litecoin have struggled to overcome. The addition of listed Zcash products in both the U.S. and Europe points to rising institutional participation in the privacy coin segment, with the European launch broadening brokerage-based access to ZEC without requiring direct custody of the cryptocurrency.
