Grayscale’s Zcash Trust is set to begin trading on NYSE Arca on or about August 25 under the ticker ZCSH, marking a significant upgrade from its current home on the OTCQX marketplace. The move represents the trust’s transformation into a spot ETF, complete with continuous share creation and redemption, a structure that should help close the gap between its market price and the actual value of the ZEC it holds.
For a fund that has historically traded at premiums as high as 240% and discounts as deep as 55% relative to its net asset value, that’s not a minor detail.
What’s inside the fund
The trust currently holds approximately 391,000 to 393,000 ZEC, translating to more than $260 million in assets under management. Coinbase Custody is handling the safekeeping of the underlying ZEC. Jane Street Capital and Virtu Americas are serving as authorized participants, the firms responsible for the creation and redemption mechanism that keeps ETF prices tethered to their underlying assets.
The annual sponsor fee is set at 2.5%. The trust originally began trading on OTCQX back on October 18, 2021, so this NYSE listing arrives nearly five years into the product’s life.
