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      Grayscale Files Amendment for Zcash ETF with Potential 200,000 ZEC Contribution

      Grayscale has submitted Amendment No. 4 to its S-3 registration statement, indicating that a subsidiary of Digital Currency Group (DCG) is in discussions to contribute approximately 200,000 ZEC tokens to the Grayscale Zcash Trust. This contribution, if finalized, would be exchanged for shares in the Trust as Grayscale aims to convert the product into a spot ETF under the ticker ZCSH on NYSE Arca.

      The proposed contribution of 200,000 ZEC represents over 1% of the total circulating supply of Zcash, which is approximately 16.8 to 17 million tokens. At current trading prices, this contribution could be valued between $96 million and $111 million. Coinbase continues to act as the custodian for the Trust's assets, a role it has maintained since the product's inception.

      DCG has previously supported Grayscale's Zcash product, including a $10 million share purchase in 2022 to bolster the Trust during a period of market challenges. While Grayscale has successfully converted its Bitcoin and Ethereum trusts into spot ETFs, the path for a Zcash ETF may be more complex due to regulatory concerns surrounding its privacy features, which have historically raised red flags among regulators.

      If the 200,000 ZEC contribution is completed, it could significantly impact market liquidity by reducing the available float of ZEC in circulation. Investors will be closely monitoring the SEC's feedback on the S-3 amendment and the progress of the NYSE Arca listing application as key indicators of the proposal's viability.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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