Grayscale files fourth amendment for Zcash Trust NYSE listing, DCG may contribute 200,000 ZEC
Grayscale has filed a fourth S-3 amendment with the SEC to convert its Grayscale Zcash Trust into a spot ETF trading on NYSE Arca under the ticker ZCSH. If approved, it would be the first U.S. spot ETF tracking a privacy coin. The filing reveals non-binding talks for DCG International Investments to seed the fund with 200,000 ZEC (worth $110 million). It also details the resolution of a mid-2026 Orchard pool vulnerability via the Ironwood upgrade, reassuring investors after ZEC's price previously fell to $299.
Grayscale Zcash Trust NYSE listing
▪Grayscale proposes to rename the Grayscale Zcash Trust and list its shares on NYSE Arca under the ticker symbol ZCSH
▪The amended registration statement specifies that the Grayscale Zcash Trust will handle share creations and redemptions primarily through cash, while allowing in-kind creations but prohibiting in-kind redemptions
▪Coinbase will serve as the prime broker, Coinbase Custody Trust Company will act as custodian, and the Bank of New York Mellon will serve as transfer agent and administrator for the Grayscale Zcash Trust
▪Grayscale filed a fourth amendment to its Form S-3 registration statement with the SEC on August 18, 2026, to convert the Grayscale Zcash Trust into a spot exchange-traded fund
DCG potential ZEC contribution
▪The discussions between Grayscale and DCG International Investments Ltd. are non-binding, meaning the affiliate could purchase more, fewer, or no shares of the trust
▪DCG International Investments Ltd. is in non-binding discussions with Grayscale to acquire approximately 200,000 ZEC tokens, valued at about $110 million, in exchange for shares of the trust
Privacy-coin ETF regulatory significance
▪If approved by the SEC, the converted Grayscale Zcash Trust would become the first spot exchange-traded fund in the United States to track a privacy coin
▪Regulated investment products have historically been wary of tokens with privacy features like Zcash, making the potential conversion of the trust a ground-breaking regulatory event
Zcash Orchard vulnerability patch
▪Following the disclosure of the Orchard vulnerability in June 2026, the price of ZEC fell from $602 to near $299, though it recovered to around $555 following the August 18 filing
▪Zcash developers patched the Orchard vulnerability within days, stated they found no evidence of exploitation, and implemented the Ironwood upgrade to retire the affected pool and detect counterfeit coins
▪In mid-2026, security researcher Taylor Hornby disclosed a vulnerability in the Zcash Orchard shielded pool that could have allowed an attacker to mint counterfeit ZEC
ZEC institutional demand growth
▪Trading volumes for the Grayscale Zcash Trust peaked above $23 million in November 2025 but declined significantly in 2026, failing to exceed $5 million in daily volume since June 2026
▪The share of ZEC held in shielded balances reached a record of nearly 30% of the circulating supply, with the Orchard pool growing from 1.92 million to 4.55 million ZEC over a twelve-month period
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