Grayscale Moves Closer to Launching its Zcash ETF on NYSE Arca
Grayscale has updated its S-3 form for Zcash ETF with the SEC, moving closer to launching the spot exchange-traded fund on NYSE Arca. ZEC price has jumped as traders responded to the announcement and other developments.
Grayscale Zcash ETF Updates Filing with the US SEC
Grayscale has filed amendment no 4 to its Form S-3 registration statement for its Zcash ETF, according to the latest US SEC filing. It advances the proposed conversion to a spot ETF that aims to offer exposure to ZEC price.
The issuer aims to convert its Grayscale Zcash Trust to spot ETF and list shares on NYSE Arca under the ticker ZCSH. The issuer has not revealed a management fee or any waiver for the first spot ETF tracking a privacy coin.
A notable change from the previous amendment concerns creation and redemption of shares. Grayscale Zcash ETF will conduct creations and redemptions primarily via cash orders. In-kind creation option remains available, but the trust changed language to reflect that it does not permit in-kind redemptions.
The filing also shows that Grayscale Zcash ETF sponsor is in discussions with DCG International Investments Ltd, a wholly owned indirect subsidiary of Grayscale’s parent Digital Currency Group (DCG).
Under a potential contribution arrangement, DCG International Investments could acquire shares through an authorized participant in exchange for 200,000 ZEC tokens. These talks are non-binding.
Will ZEC Price Surge Further?
ZEC price jumped more than 2% in the past 24 hours, with the price currently trading at $510.70. The 24-hour low and high are $500.47 and $514.03, respectively. However, trading volume has decreased by 16% in the last 24 hours despite Grayscale Zcash ETF amendment.
In the daily timeframe, the price is trading above the 50-SMA, holding it as key support level. Analysts predict $520 as a local resistance level for the privacy coin after the latest Ironwood upgrade. A decisive break beyond that point would reveal the more formidable area of resistance at $550.
CoinGlass data showed mixed sentiment in the derivatives market. At the time of writing, the total ZEC futures open interest jumped 1% to $928.22 billion in the last 24 hours. ZEC futures OI on Binance slumped 3.90% amid profit booking, while it climbed almost 9% on Hyperliquid, 3.40% on OKX and 2.18% on KuCoin.
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