Grayscale is looking to convert its Zcash Trust into a spot exchange-traded fund (ETF), potentially establishing one of the initial investment products associated with a privacy coin.

In a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday, Grayscale submitted a Form S-3 registration statement, indicating its intention to change its fund linked to Zcash (ZEC) into a spot ETF. This follows Grayscale’s introduction of various spot ETFs related to cryptocurrencies, such as Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and XRP (XRP).

Grayscale News Source: Grayscale

The streamlined process with the SEC could enable Grayscale to list the Zcash ETF on NYSE Arca. According to data from Nansen, ZEC’s price has surged over 50% in the last 30 days and skyrocketed 1,050% in the past year, reaching $519.62 at the time of writing.

Since the SEC first approved the trading of spot Bitcoin ETFs in January 2024, numerous asset management firms, including Grayscale, Bitwise, and BlackRock, have broadened their offerings to encompass other cryptocurrencies. Recently, Grayscale launched the first spot DOGE ETF, which reported $1.4 million in volume on its debut.

Are traditional Bitcoiners shifting to Zcash for enhanced privacy?

Earlier this month, Leap Therapeutics announced that it would utilize a $50 million investment from Winklevoss Capital, founded by Cameron and Tyler Winklevoss, to acquire ZEC tokens as part of its cryptocurrency treasury strategy.

ETF analyst Eric Balchunas subsequently suggested on social media that the privacy coin might draw supporters away from Bitcoin, although many were skeptical of his assertions.

Related: NYSE approves Grayscale DOGE and XRP ETFs, clearing launch for Monday