Grayscale filed Amendment No. 4 to its S-3 registration statement on August 18, revealing that a Digital Currency Group subsidiary is in discussions to contribute approximately 200,000 ZEC tokens to the Grayscale Zcash Trust. The contribution, if completed, would be exchanged for shares in the Trust as Grayscale pushes to convert the product into a spot ETF listed under the ticker ZCSH on NYSE Arca.
What the filing actually says
The amendment, filed under Registration No. 333-291800, outlines a framework for DCG to deliver roughly 200,000 ZEC tokens in kind to the Grayscale Zcash Trust. In return, DCG would receive shares in the Trust, the exact allocation of which could vary depending on how the deal ultimately gets structured.
Two hundred thousand ZEC is not a trivial amount. With Zcash’s circulating supply sitting at roughly 16.8 to 17 million tokens out of a hard cap of 21 million, that contribution would represent more than 1% of all ZEC currently in circulation. At recent trading prices between $480 and $555, the contribution would carry a notional value somewhere in the neighborhood of $96 million to $111 million.
Coinbase continues to serve as custodian for the Trust’s assets, a role it has held throughout the product’s history.
