Grayscale files to launch the world's first spot ETF for a privacy coin — Zcash!

Grayscale has filed with the SEC to convert its Zcash Trust into a spot ETF, a move that would create the world's first exchange-traded product giving direct exposure to a privacy coin. The filing arrives on the heels of the SEC reportedly closing its long-running review of privacy coins without enforcement action — removing what had been the single largest regulatory overhang over the ZEC ecosystem.

The timing is no coincidence. Multicoin Capital co-founder Tushar Jain disclosed that the crypto hedge fund has been accumulating a large ZEC position since February, framing it explicitly as a macro hedge — a signal that at least one sophisticated institutional player was positioning well ahead of this regulatory green light.

If approved, a Zcash spot ETF would mark a structural shift in how regulators and markets treat privacy-preserving blockchains, potentially opening the door for…