Grayscale Files for Zcash Spot ETF Amid Privacy Concerns

Grayscale has filed an application to convert its existing Zcash Trust into a spot ETF, marking the first attempt to list a privacy coin ETF in the United States. According to ChainCatcher, this move comes as Multicoin Capital reveals its ongoing accumulation of ZEC since February. Co-founder Tushar Jain links the investment strategy to proposed U.S. wealth tax legislation, suggesting that increased government scrutiny of private financial holdings will drive demand for assets that offer regulatory shielding at a mathematical level. The application, however, raises institutional custody challenges. Approximately 30% of Zcash's supply is held in shielded address pools, a historical high, while ETF custody typically requires the use of transparent address pools to meet audit and proof-of-balance requirements. Previously, the SEC concluded a long-term review of Zcash in January 2026 without enforcement action, significantly reducing regulatory uncertainty.