Grayscale’s effort to bring Zcash to Wall Street continues with the filing of its fourth amendment to convert the Zcash Trust (ZCSH) into a spot ETF on NYSE Arca. Alongside this regulatory move, DCG International Investments Ltd - a subsidiary of Digital Currency Group, which is Grayscale’s parent company - is discussing the purchase of shares equivalent to 200,000 ZEC. At ZEC’s price of around $555 per coin, this investment plan is valued at approximately $111 million.
Financial data as of June 30, 2026, shows that the total Net Asset Value (NAV) of the instrument stood at $155.25 million, with a NAV per share of $32.15. This figure marks growth in the value of its holdings compared to its March 31 position, when the trust held 391,103.89 ZEC worth $99.4 million. Although purchase discussions by DCG are ongoing, the filing emphasizes that no binding agreement has been reached. The affiliate can still buy more than the initial target, reduce the purchase amount, or not buy at all.
Closing the Hidden Inflation Loophole
Grayscale’s push to launch the Zcash ETF comes close to the privacy coin’s network upgrade schedule. The Zcash network recently completed the implementation of the Ironwood upgrade on July 28, 2026, to address architectural issues in its security layer. This upgrade replaces the old, vulnerable Orchard pool with a new shielded pool that has undergone a formal verification process.
This system fix addresses the previous vulnerability in the Orchard pool - a flaw that allowed attackers to mint counterfeit ZEC without leaving a public trace. Although the development team confirmed there is no evidence of any coin-minting exploitation having occurred, the risk of hidden inflation from this bug is now fully resolved. The resolution of this technical issue aligns with growing market interest, as evidenced by ZEC’s price breaking above $500 on July 10, 2026. This price milestone was driven by futures open interest reaching $1.02 billion ahead of the Ironwood fork implementation.
A New Bridge for Institutional Capital
If approved, this ETF conversion will change how major players enter the Zcash ecosystem. According to the document details, Authorized Participants (APs) will have the authority to purchase or redeem ETF shares in blocks of 10,000 shares each. This basket structure offers daily liquidity flexibility that is currently unavailable in the closed-end trust format.
To support the operations of this ETF, Grayscale has appointed Coinbase Custody as the digital asset custodian and BNY Mellon as the administrator. The fund designates the CoinDesk Zcash Price Index as its official price benchmark. This ongoing ETF filing, combined with the parent company’s planned capital injection, serves as a signal of institutional confidence - a move taken immediately after the network security threat was cleared.
Reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
