The filing follows the SEC ending its review of privacy coins without enforcement action, easing regulatory concerns.
Grayscale Investments has applied to convert its Zcash Trust into a spot ETF, which would mark the first such product tied to a privacy-focused cryptocurrency. The move follows the U.S. SEC concluding its review of privacy coins without pursuing enforcement, reducing a major regulatory risk for the sector.
The Zcash Trust currently holds ZEC, a privacy coin that obscures transaction details. Analysts noted growing institutional interest, with Multicoin Capital disclosing a significant ZEC position built since February as a macro hedge. Approval would provide direct exposure to privacy coins via traditional markets.
No immediate market reaction was reported, but the filing signals potential expansion in crypto ETF offerings beyond Bitcoin and Ethereum.