Grayscale Investments continues the process of coordinating with the U.S. Securities and Exchange Commission (SEC) for its investment product focused on Zcash ($ZEC). The company has filed a fourth amended S-3/A registration statement for the Grayscale Zcash Trust, proposing to list the product on the NYSE Arca exchange under the ticker "ZCSH".
According to a preliminary prospectus published today, Grayscale plans to rename the existing company following approval of the registration statement and the listing of the shares on NYSE Arca. The primary objective of the trust is the direct ownership of $ZEC, the native crypto asset of the Zcash network, and providing investors with an investment vehicle allowing them to gain exposure to its price fluctuations through an exchange without the need to own $ZEC themselves.
As per information contained in the statement, the trust intends to list its shares on the NYSE Arca exchange under the symbol ZCSH. Grayscale also plans for a continuous offering of shares and their periodic sale to investors. The share sale price will be determined based on various metrics, including the price of $ZEC and the market price on NYSE Arca.
The filing also provided details about the trust's operational structure. Coinbase will serve as the primary broker for the product, and Coinbase Custody Trust Company will provide custody services. Bank of New York Mellon is listed as the registrar and administrator.
Another important detail in the S-3/A document is the potential investment being considered through a subsidiary related to Grayscale's parent company, Digital Currency Group (DCG).
According to the statement, a DCG subsidiary is in negotiations to acquire approximately 200,000 $ZEC through the trust. However, it was noted that an agreement between the parties is not yet binding.
*This is not investment advice.
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