Digital asset management leader Grayscale has recently proposed a new privacy-focused Exchange-Traded Fund (ETF) that will center around the altcoin Zcash (ZEC). The Grayscale Privacy ETF’s investment strategy will primarily focus on data privacy solution providers, cybersecurity firms, blockchain-based privacy solutions, and network security companies, as outlined in an N-1A form submitted to the U.S. Securities and Exchange Commission (SEC).
While the fund will not directly invest in digital assets, it will allocate 10% of its portfolio to the Grayscale Zcash Trust (ZCSH), which is a regulated financial product exclusively invested in Zcash in a passive manner. Following the announcement, the privacy-centric digital currency experienced a significant 20% surge, reaching a high of $29.21 from its previous trading price of $24.24. Currently, ZEC is trading at $26.89.
For a company to be eligible for inclusion in the Grayscale Privacy ETF’s investment portfolio, it must be publicly listed on a stock exchange and possess a market capitalization of at least $250 million. Grayscale, a pioneering firm in the crypto industry, was among the select few that received approval from the SEC earlier this year to launch a spot Bitcoin (BTC) ETF. Notably, the asset management giant successfully transformed its flagship product, the Grayscale Bitcoin Trust (GBTC), into an ETF listed on NYSE Arca.
This latest development underscores Grayscale’s commitment to expanding its product offerings and investment opportunities in the ever-evolving cryptocurrency and blockchain sector.
