Grayscale Debuts First U.S. Spot Zcash ETF, Floats $8,100 Bull Case

Zcash (ZEC) is back on traders' radar after a sharp rally and the launch of the first U.S. spot Zcash exchange-traded fund. Grayscale Research said ZEC could climb as high as $8,100 under a scenario in which Zcash captures a meaningfully larger share of the crypto market. The firm argues ZEC remains undervalued even after its recent surge. ZEC has risen nearly 70% in recent weeks and is up about 350% year-to-date. After the run-up, the token has shown near-term volatility, with futures open interest declining. On Aug. 25, Grayscale launched the Grayscale Zcash ETF (ticker: ZCSH), now listed on NYSE Arca. The fund was converted from the Grayscale Zcash Trust and is described as the first U.S. exchange-traded product focused on ZEC. Grayscale's head of research, Zach Pandl, outlined a five-year bullish framework that positions Zcash as a potential challenger to Bitcoin in specific use cases. He pointed to growing demand for privacy as AI-enabled surveillance and financial monitoring expand, as well as Zcash's efforts to address prospective quantum-computing risks. The network's improving cross-chain connectivity and its use of "intents" technology were also cited as factors that could broaden adoption beyond transaction privacy. Grayscale said the spot ETF structure offers investors a more straightforward way to access ZEC exposure through a traditional product. It also provides greater liquidity than the prior trust format, with creation and redemption mechanisms designed to help keep the fund's market price closer to net asset value. In its opening session, the ETF posted $14.8 million in trading volume. Shares rose more than 3.5% early in the day before turning lower, ending down 1.54% at $63.10.