Zcash surges to eight-year high as Grayscale pushes for first US Zcash ETF
Zcash price jumps to highest level since 2018
Zcash (ZEC), a cryptocurrency focused on privacy, rose to nearly $850 on August 22, its highest price since 2018. The increase follows Grayscale’s latest filing with the U.S. Securities and Exchange Commission (SEC) to convert its Zcash trust into an exchange-traded fund (ETF). An ETF is a fund that tracks the price of an asset and can be bought and sold like a stock.
The price of ZEC climbed more than 22% in 24 hours, reaching about $818.77 by 1:00 p.m. EDT. The cryptocurrency briefly hit $855 during the day, marking its highest level in eight years. Zcash now has a market value of around $13.8 billion, making it the 12th-largest cryptocurrency.
Key details of the surge
- ZEC rose 22% in 24 hours, reaching nearly $850, its highest price since 2018.
- Futures trading volume hit $9.54 billion in 24 hours, while spot trading volume was $1.06 billion.
- Grayscale filed its fifth amended registration to rename its Zcash Trust as The Zcash ETF, with a 2.5% annual fee.
- ZEC has recovered over 300% from its June low after a bug was fixed.
Grayscale’s push for a Zcash ETF
Grayscale, a company that manages crypto investment products, submitted its fifth amended filing with the SEC on August 21. The filing proposes converting the existing Grayscale Zcash Trust into The Zcash ETF. If approved, this would be the first U.S. ETF to directly track ZEC’s price.
The filing also sets an annual sponsor fee of 2.5%. Grayscale’s parent company, Digital Currency Group (DCG), is considering buying 200,000 ZEC, worth about $164 million at current prices, through the trust. However, these discussions are nonbinding, meaning DCG may buy more, fewer, or no shares.
Futures trading drives activity
Most of the trading activity during ZEC’s price surge came from futures markets. Futures are contracts that allow traders to bet on the future price of an asset. According to data from CoinGlass, ZEC futures volume reached $9.54 billion in 24 hours, while spot trading volume was only $1.06 billion. Open interest, which measures the total value of outstanding futures contracts, stood at $1.8 billion, about 13% of ZEC’s market value.
Zcash’s recovery from June selloff
ZEC’s recent rally marks a strong recovery from its sharp decline in June. The cryptocurrency fell as much as 60% after developers disclosed a critical bug that could allow counterfeiting in Zcash’s Orchard shielded pool. A shielded pool is a feature that keeps transactions private. The bug was later fixed, and the Orchard pool was reactivated through a network upgrade.
At its peak on August 22, ZEC had more than tripled from its June low and was trading about 35% above its pre-selloff level. However, it remains about 75% below its all-time high of $3,191.93.
What is confirmed
- ZEC reached nearly $850 on August 22, its highest price since 2018.
- Grayscale filed its fifth amended registration to convert its Zcash Trust into The Zcash ETF.
- Futures trading volume for ZEC hit $9.54 billion in 24 hours.
- ZEC has recovered over 300% from its June low after a bug was fixed.
What is still unclear
- Whether the SEC will approve Grayscale’s Zcash ETF filing.
- If Digital Currency Group will proceed with buying 200,000 ZEC through the trust.
- How much demand there will be for a Zcash ETF compared to other crypto ETFs.
Why this matters for crypto investors
If approved, The Zcash ETF would provide a regulated way for investors to gain exposure to Zcash without directly buying the cryptocurrency. This could attract more institutional investors, who often prefer ETFs for their simplicity and regulatory oversight. However, the success of other altcoin ETFs has varied, with some seeing low inflows compared to Bitcoin ETFs.
