ZCash jumps 15% after Grayscale seeks SEC nod for privacy ETF

Privacy-centric digital asset ZCash surged by roughly 15% after reports surfaced that Grayscale Investments had filed for a privacy-targeted change-traded fund (ETF) with the US Securities and Replace Price (SEC).

Data from CryptoSlate finds that ZEC reached a excessive of virtually $30 ahead of pulling aid to spherical $28 as of press time.

Grayscale, known for its pioneering Bitcoin ETF, seeks to amplify its choices into privacy-targeted resources. Despite significant outflows lately, its flagship fund, GBTC, remains the market leader with roughly $22.9 billion in resources below management.

Grayscale’s privacy ETF

The Privacy ETF represents an index-primarily primarily based completely fund designed to watch the performance of companies within five key sub-topics of the tips privacy sector.

These embody files provider solutions, cyber provider providers, blockchain-primarily primarily based completely privacy solutions, community and communique security providers, and privacy-preserving protocols.

According to the filing, inclusion within the Index requires companies to salvage over 50% of their revenues from these sub-topics.

Eligible companies must publicly change on US, non-US developed markets, or rising market stock exchanges. They must also beget a market capitalization of no much less than $250 million and meet particular liquidity requirements.

ETF to make investments in Grayscale Zcash Have confidence

The filing stated that the Privacy ETF’s Index will allocate 10% of its funds to Privacy-Keeping Protocols by technique of the Grayscale Zcash Have confidence (ZCSH).

ZCSH recommendations as an investment automobile exclusively tied to the price of ZCash’s native ZEC token. According to Grayscale’s internet dwelling, the fund holds $7.7 million worth of crypto tokens as of Feb. 21.

ZEC operates on a decentralized, open-source community, enabling customers to transact with out revealing sensitive files cherish transaction parties. The digital asset ranks fourth among the many very most sensible privacy tokens by market capitalization, trailing Monero, Mina, and Worldcoin.

Meanwhile, this construction unfolds against heightened regulatory scrutiny on privacy tokens. Cash cherish Monero discover faced regulatory consideration because of concerns over capability illicit spend, prompting major exchanges corresponding to OKX and Binance to do away with them from their platforms.