Zcash (ZEC) Soars on Grayscale Spot ETF Filing, Eyeing $600 Resistance
Grayscale Investments has filed a registration statement with the U.S. Securities and Exchange Commission to turn its Zcash Trust into a
Quick overview
- Grayscale Investments has filed to convert its Zcash Trust into a spot ETF, potentially marking a significant advancement for privacy-focused cryptocurrencies.
- Zcash is currently trading above $539, reflecting a 1% increase in the last 24 hours, as investors assess the implications of the regulatory filing.
- If approved, this would be the first ETF linked to a privacy coin available to U.S. investors, providing regulated access to Zcash's blockchain technology.
- Despite recent volatility, institutional interest in Zcash is growing, with predictions suggesting potential price increases if the ETF application is successful.
Grayscale Investments has filed a registration statement with the U.S. Securities and Exchange Commission to turn its Zcash Trust into a spot exchange-traded fund. This might be a big step forward for cryptocurrencies that focus on privacy. As of this writing, Zcash ZEC/USD is trading above $539, which is about a 1% rise over the previous 24 hours. Investors are still figuring out what this regulatory filing means.
Grayscale’s Wednesday filing is the company’s most recent move into altcoin ETF products. It follows the successful launching of ETFs linked to Bitcoin, Ethereum, Dogecoin, XRP, and Solana. If this gets the go light, it will be the first ETF connected to a privacy coin that U.S. investors may buy. It will provide them regulated access to Zcash’s blockchain technology, which lets people make safe transactions with optional disclosure features.
Grayscale Files Application to Launch Spot Zcash ETF
Grayscale sent in a Form S-3 registration statement saying that they want to launch the fund on NYSE Arca under the ticker ZCSH. The Zcash Trust, which started in 2021, now has over $196 million in assets under management. This shows that institutions are quite interested in it, even before it becomes an ETF.
The submission does, however, admit that there are big problems with the rules. Grayscale said it can’t allow in-kind share creation or redemption with authorized participants at first since the market isn’t sure about compliance procedures. This limit is because broker-dealers are still making changes to keep up with the SEC’s changing rules for digital asset ETFs, even though the SEC has already approved in-kind processing for several cryptocurrency funds.
The document also talks about the regulatory problems Zcash has had, like how it was delisted from several exchanges in late 2023 and early 2024 because privacy coins were getting more attention. These delistings show that there are bigger regulatory worries regarding cryptocurrencies that have better privacy features for transactions.
ZEC/USD Technical Analysis: Strong Momentum Despite Recent Pullback
ZEC’s technical picture is still very bullish on longer timeframes, even if it fell 17% in a week, which the Monday rise helped lessen. According to Nansen, the cryptocurrency has gone up more than 500% in the last two months and more than 1,050% in the last year. The 30-day performance shows a 50% increase.
The area of support is quite important right now, and it is above $539. Bulls have effectively defended this sector, which suggests that there is a lot of interest in buying at these levels. The daily rise of almost 1% shows that purchasing demand is still strong, even after the recent weekly drop.
If the trend keeps going, $575 and $620 could be short-term targets to watch. On the other hand, support looks strong at $510–520, where a lot of buying has happened during previous pullbacks.
Institutional Adoption and Market Catalysts
There is more interest from institutions in Zcash, which is why the ETF application came out. Leap Therapeutics said earlier this month that company planned to buy ZEC tokens as part of its cryptocurrency treasury strategy. company will use a $50 million investment from Winklevoss Capital to do this. This move shows that more companies are starting to see privacy coins as real treasury assets.
Eric Balchunas, an ETF analyst, said that Zcash might be able to get support from regular Bitcoin holders who want more privacy features. However, this idea is still being talked about in the cryptocurrency world.
Zcash Price Prediction: Cautiously Optimistic Outlook
If the SEC approves Grayscale’s ETF application, ZEC’s price could go up a lot since it would be easier to buy and more institutional money will come in. If the debut goes well, prices might quickly rise to $650–$700, and if the market stays strong, they could even reach $800–$850.
But investors should still be careful because there are still questions about the rules around privacy coins. If the request is denied or takes a lengthy time, it could cause a correction near the $450-$480 support levels. The 17% drop in a week shows that volatility is still high, so you need to be careful about how much you invest and how you manage your risk.
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