Grayscale in Talks for Significant Zcash Contribution as Trust Eyes NYSE Arca Listing
Grayscale has revealed ongoing discussions with a subsidiary of Digital Currency Group (DCG) concerning a potential contribution of approximately 200,000 ZEC to its Zcash Trust. This development, disclosed in an August 18 amendment to a registration statement, signals a move to list the trust on the NYSE Arca.
Grayscale Investments Sponsors, the entity overseeing the trust, stated it is in talks with DCG International Investments Ltd. for the subsidiary to acquire shares via an authorized participant in exchange for the specified tokens. The filing clarifies that “because these discussions are not binding agreements or commitments to purchase, the Potential Investor could determine to purchase more, fewer, or no Shares.”
The trust also intends to trade under the ticker ZCSH, a symbol already associated with its shares on the OTCQX market. As of June 30, the trust’s net asset value stood at $155.2 million, holding roughly 2.3% of circulating ZEC. On August 12, its shares closed at $36.6, representing a 7% discount to the net asset value per share.
Since October 2021, the trust’s shares have traded at a discount for 700 days, with a maximum discount reaching 55% and a peak premium of 240%. The Securities and Exchange Commission (SEC) has yet to approve or disapprove these shares.
Should the proposed contribution proceed, Grayscale’s parent company would assume a controlling stake. The filing indicates that DCG “may, directly and indirectly through the Potential Investor and other affiliates, own a majority of the Shares representing ownership in the Trust,” thereby holding “the ability to control the outcome of virtually all matters presented to our shareholders for their approval.”
DCG is also actively involved in mining the asset. Its subsidiary, Fortitude Mining, mines ZEC and manages network infrastructure. Furthermore, Foundry Digital operates a ZEC mining pool that accounted for approximately 15.4% of the Zcash Network’s hash rate for the month ending July 2026.
The filing warns that DCG “could prioritize its own interests in these and other investments over those of the Trust.” This comes as Zcash recently implemented the Ironwood upgrade and its turnstile mechanism following the discovery of a counterfeiting bug in the Orchard shielded pool.
The Sponsor’s Fee, identified as the trust’s sole anticipated ordinary recurring expense, is noted in Amendment No. 4 with its annual rate left unspecified, similar to the trust’s intended new name. Coinbase Custody Trust Company currently holds the ZEC, with Coinbase acting as the prime broker.
Grayscale has previously navigated similar conversions. The SEC previously approved its Digital Large Cap Fund for NYSE Arca listing under generic listing standards that eliminated the need for a 19(b) filing. The asset manager had also previously filed to convert its XRP trust into an ETF on the same exchange.
As of August 19, ZEC was trading at $550.78, with a market capitalization of $9.3 billion, according to CoinGecko.
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