21Shares has launched Europe’s first exchange-traded product (ETP) for Zcash, listing on Euronext Paris and Euronext Amsterdam on September 22. The ETP, trading under the ticker ZCASH, offers investors regulated exposure to the privacy-focused cryptocurrency.
The fund is physically backed, meaning it holds the underlying Zcash tokens, with BitGo serving as the institutional custodian. On its launch day, the Zcash ETP had 5,000 securities outstanding, a net asset value of $20.04 per unit, and approximately $100,000 in assets under management. The ETP charges an annual management fee of 2.5%.
This new product aims to simplify access to Zcash for European investors by removing the operational complexities associated with direct cryptocurrency ownership, such as setting up exchange accounts or managing private keys. The ETP provides exposure to Zcash’s unique features, including its optional shielded transactions that allow users to obscure sender, receiver, and transaction amounts, a capability not present in more transparent cryptocurrencies like Bitcoin and Ether.
Zcash, which forks Bitcoin’s code, maintains a 21 million coin cap, proof-of-work mining, and a halving schedule. Coinholders recently voted with 98.9% in favor of retaining the Bitcoin-style halving model. This structure is designed to keep inflation in check.
The 2.5% annual management fee for the Zcash ETP is higher than those typically seen for Bitcoin or Ethereum ETPs. According to interpretations of the market, this premium is attributed to the less common nature of Zcash custody for institutional custodians, suggesting 21Shares is betting on regulated demand for privacy coin exposure justifying the increased cost.
Recent market activity shows Zcash has experienced significant gains, with its price (ZEC) reportedly gaining over 2,700% this year. On Wednesday, ZEC pushed past $1,600, reaching an intraday high near $1,680 before settling around $1,522. The cryptocurrency’s market capitalization is reported to be near $27.5 billion.
In related developments, Grayscale converted its Zcash Trust into the ZCSH ETF on NYSE Arca in August. Grayscale’s ZCSH has attracted over $233 million and holds close to $890 million in assets. A 3-for-1 share split for Grayscale’s ZCSH is scheduled for September 30.
The launch of the Zcash ETP by 21Shares may indicate increased investor interest in privacy coins, a trend also reflected in the performance of ZEC and the actions of asset managers like Grayscale. The ETP offers a regulated avenue for European brokerage investors to gain exposure to Zcash’s distinct features and market dynamics.
Why This Matters
The materials describe a narrow update: 21Shares launched a physically backed Zcash ETP on Euronext Paris and Euronext Amsterdam, charging a 2. The ETP removes the operational headache of buying Zcash directly for investors, such as opening crypto exchange accounts or managing private keys.
Broader Context
Source materials place the factual news in this context: Zcash is a privacy coin that allows its users to shield balances and transfers, unlike more traditional crypto assets like Bitcoin and Ethereum, which are transparent by default.
