The Zcash ETF
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsGrayscale Zcash Trust (ZEC) is a passive Delaware statutory trust that holds Zcash and issues shares to track the digital asset's price, currently trading OTC and planning a NYSE Arca listing.
What they do
The Trust holds Zcash ('ZEC') and issues shares in baskets of 100 to accredited investors in exchange for ZEC deposits; shares trade on OTCQX under 'ZCSH'. It does not use leverage or derivatives and has no redemption program. The Trust's objective is for share value to reflect the Index Price (CoinDesk Zcash Benchmark Rate as of April 1, 2026) less expenses.
Revenue drivers
- Share Creations — The Trust receives ZEC in exchange for newly issued baskets; each share represents approximately 0.0815 ZEC as of December 31, 2025. Growth depends on accredited investor demand for ZEC exposure.
- ZEC Holdings — Holds ~2.4% of ZEC in circulation; net income is driven by changes in ZEC fair value (reported net income 2025: $177.8M, 2024: $11.0M, 2023: -$3.6M).
- No Active Operations — Other than creating shares and paying sponsor fees, the Trust has no business operations; its 'revenue' is essentially the appreciation of ZEC value.
Recent performance
For 2025, net income was $177.8M versus $11.0M in 2024 and -$3.6M in 2023. As of June 30, 2026, total assets were $155.3M, with no liabilities. The Trust states that to date it has not met its investment objective, as shares have traded at substantial premiums/discounts to NAV due to lack of redemption program.
Strategy
The Trust filed a Form S-3 in November 2025 to register shares for a public offering and plans to list on NYSE Arca as an ETF, with an ongoing redemption program. The Sponsor intends to rename it Grayscale Zcash Trust ETF and align operations with an exchange-traded product model. Until then, no redemption program exists, and creations may halt. The Trust is passive and does not seek returns beyond tracking ZEC.
Risks
- No Redemption Program — Without a redemption mechanism, shares can trade at substantial premiums/discounts to NAV, and Authorized Participants cannot arbitrage.
- Regulatory Uncertainty — If ZEC is determined to be a security, the Trust may dissolve or need to comply with the Investment Company Act.
- Listing and Registration Delays — No assurance that the SEC will declare Form S-3 effective or that NYSE Arca will approve the listing; active trading may not develop.
- Market Risk — The value of ZEC is volatile, and the Trust's net income is highly sensitive to changes in ZEC fair value (as seen in 2022's -$36.2M).
Outlook
Management expects to convert to an ETF structure pending SEC and NYSE Arca approvals, which would introduce a redemption program and potentially narrow premium/discount. No timeline is given. Until then, the Trust continues to operate as a passive vehicle without redemptions.