Winklevoss Seeks Spot Zcash ETF With 0.25% Fee, Setting Up Challenge to Grayscale's ZCSH

Winklevoss Asset Services, the fund sponsor led by Cameron Winklevoss, filed with the U.S. Securities and Exchange Commission on Tuesday to launch the Winklevoss Zcash ETF, marking the second U.S. filing for a spot Zcash product. The proposal calls for the ETF to hold ZEC directly and list on Nasdaq under the ticker WINK. The filing outlines a 0.25% annual sponsor fee that would accrue in ZEC. Affiliates of Winklevoss Capital also signaled potential interest to invest up to $100 million, though the document notes those indications are not binding commitments. The move comes as Grayscale's Zcash ETF (ZCSH) has already reached the market. ZCSH, which trades on NYSE, began trading on August 25 and became the first U.S. exchange-traded vehicle offering direct exposure to ZEC. Zcash Treasuries data show ZCSH held 644,878 ZEC valued at $977.4 million as of September 23, with cumulative net primary-market inflows of $306.1 million. With an incumbent product in place, WINK would be competing for existing demand rather than building a market from scratch. A key differentiator is cost: ZCSH lists a 2.5% sponsor fee, and WINK's proposed 0.25% fee could spark pricing pressure in Zcash ETFs. The gap could be especially meaningful for investors holding positions for several years, and it could give WINK a marketing edge if it launches with the fee unchanged. Still, ZCSH starts with first-mover benefits and a sizable asset base. Recent flow data suggest early momentum may be fading. Farside Investors reported $81.2 million of outflows between September 28 and October 5, including $26.9 million on October 2 and $3.6 million on October 5. Over the period tracked by Farside, cumulative net inflows stood at $225 million. WINK may need to draw fresh allocations and potentially win over investors already getting Zcash exposure through ZCSH. Performance has been a tailwind for the asset: data cited by 247WallSt show Zcash up roughly 741% over the past year, while Bitcoin fell about 30% over the same period. Zcash has outperformed much of the broader crypto market as institutional access to privacy-focused assets gains traction. The network uses zero-knowledge technology that can shield transaction details, a feature that gives ZEC a distinct investment case as demand for privacy-preserving digital assets grows. U.S. spot crypto ETFs have broadened beyond Bitcoin and Ethereum to include a growing list of alternative tokens. A Zcash ETF would push that expansion into the more controversial privacy-coin segment. The filing also marks a return of the Winklevoss name to the crypto ETF arena. The SEC rejected the Winklevoss brothers' proposal for the Winklevoss Bitcoin Trust in 2017, years before spot Bitcoin ETFs were approved. Open questions remain: whether Zcash's rally can translate into durable institutional demand, and whether a lower-cost entrant can take meaningful share from the first U.S. Zcash ETF.