Grayscale’s ZCSH Begins Trading as First Dedicated Zcash ETF With 2.5% Sponsor Fee

• Grayscale launched ZCSH on Aug. 25 after regulatory effectiveness, allowing brokerage accounts to gain spot exposure to ZEC.
• ZCSH charges a 2.5% annual sponsor fee, while Coinbase Custody holds ZEC and Foreside Fund Services handles marketing.
• Zcash offers optional shielded transactions, with 4.4 million ZEC in shielded supply representing about 26% of circulation.

Grayscale’s Zcash ETF, ticker ZCSH, began trading on NYSE Arca on Aug. 25, giving investors spot exposure to ZEC. Grayscale described it as the world’s first exchange-traded product dedicated to Zcash. The launch followed regulatory effectiveness on Aug. 24 and NYSE Arca certification the same day.

https://twitter.com/Grayscale/status/2092227194802282574?s=20

ZCSH Opens Spot ZEC Access

Coinbase Custody Trust Company holds ZEC for the fund, while Foreside Fund Services handles marketing. The fund charges a 2.5% annual sponsor fee, according to the final prospectus. ZCSH evolved from the Grayscale Zcash Trust, which began as a private placement in October 2017. 

Its shares traded on OTCQX from October 2021 before moving to NYSE Arca. Grayscale said brokerage and investment accounts can access ZEC through the vehicle. Investors can gain exposure without buying or safeguarding ZEC directly.

Zcash Features Behind the Fund

Zcash launched in 2016 with a 21 million coin supply cap and proof-of-work consensus. It also offers optional privacy through shielded transactions. Shielded transactions hide sender, recipient and amount details while maintaining network verification. 

Viewing keys can let users disclose transaction details to auditors, counterparties or regulators. Grayscale said shielded supply reached 4.4 million ZEC, equal to about 26% of circulating supply. The company cited upgrades including Sapling, Orchard, NU5 and Ironwood.

Ironwood went live in July 2026 and added a turnstile mechanism against counterfeit coins. The upgrades improved shielded transactions and added resilience against certain future quantum risks.

Fund History And Zcash Support

The fund’s predecessor reported a $155.2 million net asset value at June’s end. Its holdings represented about 2.3% of circulating ZEC then. Meanwhile, the OTCQX discount narrowed from 17% on June 30 to 7% on Aug. 12. 

It reached 1% on Aug. 20, when shares closed at $45.34. DCG International Investments remains in talks to acquire shares using about 200,000 ZEC. The discussions remain nonbinding, and the subsidiary may buy more, fewer or no shares.

Grayscale said all management fees will support Zcash ecosystem development and ZCSH marketing for up to 12 months. Steve Vanourny said AI-driven financial monitoring could increase demand for privacy.

Bitwise CEO Hunter Horsley also acknowledged the Zcash community’s ETF launch and current momentum.

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