Grayscale Zcash ETF Debuts on NYSE Arca With 2.5% Fee

Grayscale's Zcash exchange-traded fund began trading on NYSE Arca on August 25, 2026, under the ticker ZCSH. The firm calls it the first exchange-traded product in the world to offer spot exposure to Zcash (ZEC), and the fund carries a sponsor's fee of 2.5% a year.

The listing ends nearly nine years of ZCSH trading outside a major exchange. The product launched as a private placement in October 2017 and moved to OTCQX in October 2021, but the NYSE Arca debut gives investors direct stock-exchange access to a token built around optional transaction privacy, a feature that sets it apart from most assets that have reached exchange-traded wrappers so far. The registration statement went effective on August 24, NYSE Arca certified the listing the same day, and the fund dropped the Grayscale Zcash Trust name as part of the conversion.

NAV Discount Narrows Ahead of the Listing

Shares that traded at a 17% discount to net asset value on June 30 narrowed to a 7% discount by August 12, then to 1% by August 20, when they closed at $45.34 on OTCQX. The trust's net asset value stood at $155.2 million at the end of June, when its holdings equaled about 2.3% of the ZEC in circulation.

The final prospectus also confirmed the 2.5% sponsor fee, a figure still missing when Grayscale first disclosed contribution talks with a Digital Currency Group (DCG) unit on August 18. DCG International Investments, a DCG subsidiary, remains in discussions to acquire ZCSH shares through an authorized participant in exchange for roughly 200,000 ZEC, a stake that would make up a substantial portion of the fund's ownership if the deal closes. The talks are not binding, and the prospectus notes DCG could end up buying more, fewer, or no shares. The document repeats a standing warning that DCG, Grayscale's parent, may eventually hold a majority of ZCSH shares.

The listing also lands at an uneven moment for crypto ETF demand more broadly. Spot Bitcoin funds posted their worst month on record in June, shedding $4.5 billion as capital rotated into AI stocks, a reminder that investor appetite for newer altcoin products like ZCSH can shift quickly once it moves onto a public exchange.

Coinbase Custody Trust Company holds the fund's ZEC, and Foreside Fund Services acts as the marketing agent. Grayscale's Head of Index, Steve Vanourny, tied the launch to the firm's history of bringing new asset types to exchange-traded products, framing it as a response to growing investor demand for financial privacy as monitoring tools, including AI, become more capable.

ZCSH's 2.5% fee sits well above what rivals are charging for newer crypto ETFs. When Morgan Stanley launched its own Ethereum and Solana exchange-traded products on NYSE Arca in July, it priced both at a 0.14% expense ratio, underscoring how a privacy-focused asset with a smaller, more established shareholder base can still command a premium once it reaches an exchange.

ZEC Trades Near an Eight-Year High

Zcash launched in 2016 with a Bitcoin-style 21 million coin supply cap and proof-of-work consensus, layered with optional privacy features that can shield the sender, recipient, and amount of a transaction. The network has passed through several major upgrades since then, including Sapling in 2018, Orchard in 2022, and the Ironwood upgrade that went live in July 2026 with a turnstile mechanism built to prevent counterfeit coins. Grayscale put the network's shielded supply at about 4.4 million ZEC, roughly 26% of the circulating total.

ZEC traded at $785 on August 26, according to CoinGecko, making it the 12th-largest digital asset with a $13.2 billion market capitalization. Two days before the ETF listing, the token touched roughly $880, its highest price since January 2018, before giving back close to $100 of that move.