In a bold move that could reshape the cryptocurrency landscape, Grayscale Investments has submitted a proposal to convert its longstanding Zcash Trust into a U.S.-listed exchange-traded fund (ETF). This strategic maneuver, announced on a Wednesday, comes at a time when Zcash is experiencing an unprecedented surge—its price skyrocketing by nearly 1,000% over the past year. If this application receives the green light from the Securities and Exchange Commission (SEC), it will mark a significant milestone: the first U.S. ETF to provide regulated access to Zcash, a privacy-focused cryptocurrency utilizing zero-knowledge proofs to safeguard user anonymity.
The prospects of a Zcash ETF are particularly compelling as they could introduce a mainstream pathway for institutional investors into the often-misunderstood realm of privacy coins. Grayscale has pointed out that with increasing concerns about the transparency of transactions on public blockchains like Bitcoin, the demand for assets that offer privacy features is surging. By providing easier buy-and-sell options through traditional brokerage accounts, a Zcash ETF could replace the management premiums associated with the current trust structure, making it an attractive option for investors seeking privacy without sacrificing regulatory compliance.
What’s driving this pivot toward privacy? The excitement surrounding Zcash significantly intensified around September, spurred by mounting concerns that governmental organizations were becoming more adept at tracing Bitcoin transactions. This wave of anxiety propelled Zcash into a sharp upward trajectory, with its price leaping from approximately $40 to over $700 in just a few weeks, a remarkable feat for a coin birthed in 2016. However, this rally hasn’t been without its share of volatility: Zcash recently soared to as high as $723 only to later plunge to $504, before finding a slight recovery. As of the latest reports, Zcash was trading around $450, still showcasing a notable 47% gain over the last month—but a stark contrast to its historical peak of $3,192.
Source: CoinGecko
Yet, the rapid rise of Zcash has also brought with it a whirlwind of caution and skepticism. Arthur Hayes, co-founder of the crypto trading platform BitMEX, recently voiced a strong warning to Zcash holders. He cautioned against keeping ZEC on centralized exchanges, arguing that such actions strip the asset of its foundational privacy features, effectively turning it into a traceable token. This comment has reignited a critical dialogue surrounding self-custody and the complex regulatory landscape that privacy coins navigate when engaged with mainstream trading platforms.
The vibrant fluctuations in Zcash’s value have also caught the attention of analysts and market watchers. Technical metrics suggest that Zcash’s price movements are beginning to exhibit signs of exhaustion, forming a symmetrical triangle pattern in trading terms. Such patterns can foreshadow significant shifts in price direction, typically trending downward when market conditions are uncertain. As comparisons are drawn to the explosive but ultimately volatile trades of assets like BNB in 2021, experts are warning of a potential 60% correction if the momentum continues to decline.
Parabola breaks are typically 60%+ correction— Nebraskangooner (@Nebraskangooner) November 21, 2025
Amidst this backdrop, issues of market manipulation have also surfaced, with venture capitalist Mark Moss sharing alarming insights that hint at possible attempts by certain actors to inflate Zcash’s price through paid promotions. In addition, fellow analyst Rajat Soni expressed strong skepticism, alleging that unscrupulous promoters have propagated misleading headlines to attract uninformed investors into the market.
ScammersThis is why I will never buy ZcashThey need exit liquidityBuy at your own riskYou might get dumped on the second you own it https://t.co/inAeoPWyGc pic.twitter.com/9OweOupvrn— Rajat Soni, CFA (@Rajatsoni) November 16, 2025
These accusations raise important questions about whether Zcash’s meteoric rise reflects genuine interest or if it’s part of a premeditated scheme to entice exit liquidity from new investors. Grayscale’s application comes at a time when the U.S. ETF market is buzzing; on November 22, the New York Stock Exchange approved the conversion of Grayscale’s XRP and Dogecoin ETFs, indicating a growing appetite for wide-spread adoption of cryptocurrencies in investment portfolios. With Solana, Dogecoin, and XRP ETFs already making waves, Zcash’s introduction to this evolving market could signify a turning point in how privacy assets are perceived.
As we venture further into this new chapter for Zcash and the broader cryptocurrency arena, it becomes crucial for investors to remain vigilant. The landscape is shifting, and while opportunities abound, so too do the challenges that come with navigating the complexities of asset management and regulatory compliance in this exhilarating market. Stay tuned, as we continue to monitor these developments that may ultimately reshape the future of cryptocurrency investment.