Grayscale submits the first spot ETF application for a privacy coin

May 12 News, Grayscale has submitted an application for a Zcash spot ETF, converting the existing Zcash trust into a spot product, becoming the first privacy coin ETF seeking to list in the United States. At the same time, Multicoin Capital disclosed that it has been building a position in ZEC since February, with co-founder Tushar Jain linking the investment logic to the proposed U.S. wealth tax legislation, believing that government expansion of monitoring private financial holdings will drive structural demand for assets that are shielded at the mathematical layer.
However, the application also raises institutional custody challenges: approximately 30% of Zcash’s supply is held in shielded address pools, the highest in history, but ETF custody almost requires the use of transparent address pools to meet audit and balance proof requirements. Previously, the SEC concluded its long-term review of Zcash in January 2026 without taking enforcement action, significantly reducing regulatory uncertainty.