- Grayscale has filed to convert its Zcash Trust into the first U.S. spot Zcash ETF.
- Zcash is up more than 1,000% this year, with shielded transaction adoption hitting record highs.
- The move signals rising institutional interest in privacy-focused digital assets.
Grayscale is officially taking steps to bring the U.S. its first-ever exchange-traded fund tied directly to Zcash, marking a milestone few expected even a year ago. The firm filed an S-3 registration with the SEC to convert the long-standing Grayscale Zcash Trust into a regulated spot ETF. It’s the same playbook Grayscale used when transforming its Bitcoin Trust into the first U.S. spot BTC ETF back in early 2024, and now it’s trying to do the same for a privacy-focused asset that suddenly isn’t so niche anymore.
Zcash Becomes One of 2025’s Breakout Assets
The timing of this move is hard to ignore. Zcash has exploded more than 1,000% year-to-date, with another sharp jump of roughly 40% over the last month. Its performance is actually outpacing Bitcoin and Ethereum, which is something almost nobody forecasted heading into the year. What used to be seen as an experimental privacy coin — a sort of cryptographic sandbox — is now being pitched as a form of true digital cash. And the market seems to agree, judging by how aggressively capital has flowed into the ecosystem.
Shielded Activity Surges as Adoption Grows
A big part of the renewed interest comes from Zcash’s shielded adoption spike. Encrypted transaction usage has hit levels never seen before, with about 30% of all ZEC transfers now happening through shielded pools. On top of that, between 20% and 25% of the entire circulating supply is currently sitting in encrypted addresses. With this momentum, Zcash recently overtook Monero in market cap, making it the largest privacy-focused cryptocurrency in the world and giving investors a new narrative to latch onto.
A Bet on Digital Privacy Infrastructure
By filing for a Zcash ETF, Grayscale is effectively betting that digital privacy is becoming a real investment thesis — not a fringe one. A fully regulated spot ETF creates a cleaner and more accessible way for institutions and retail traders to get exposure to ZEC without managing private keys or handling privacy tooling themselves. And with the coin outperforming the majors in a year full of volatility, the appetite is clearly there. Whether the SEC signs off is a different question, but the filing alone signals that Zcash has finally entered the mainstream conversation.
