Grayscale, a company specializing in cryptocurrency asset management, has launched a new Exchange-Traded Product (ETF) in the US, offering investment in the privacy-focused altcoin Zcash ($ZEC). Trading of the Zcash ETF, ZCSH, began today on the NYSE Arca exchange.
Created by converting the Grayscale Zcash Trust into an ETF, ZCSH is the first US exchange-traded product focused on $ZEC. According to provided data, as of August 24th, the fund's assets under management were approximately $314 million, and its portfolio held about 387,200 shares of $ZEC.
The annual management fee for ZCSH is set at 2.5%. Grayscale also announced that revenues from these management fees, received within 12 months of the registration statement's effective date, will be directed towards supporting the Zcash ecosystem and the product's marketing initiatives.
In announcing the new product, Grayscale characterized Zcash as one of the leading digital currencies offering financial privacy. The company stated that Zcash allows users to choose whether to keep their transaction data confidential, combining this with a limited supply and a mining-based monetary policy similar to Bitcoin.
Grayscale noted that while Bitcoin transactions are traceable on the public blockchain, Zcash, with its maximum supply of 21 million units and Proof-of-Work consensus mechanism, allows users to keep their balances and transactions private.
The company also claimed that the use of privacy features in Zcash has been steadily increasing. According to Grayscale, shielded transactions sometimes account for over 50 percent of user activity, with improvements in wallet infrastructure and scalability facilitating the use of private digital payments.
*This is not investment advice.
end-content
