TLDR
- Grayscale filed its fourth S-3 amendment as it advances the proposed Zcash Trust exchange listing.
- The Zcash Trust plans to list shares on NYSE Arca under the proposed ZCSH ticker.
- ZCSH would give investors ZEC price exposure through shares without requiring direct cryptocurrency ownership themselves.
- The proposed trust would support cash creations and redemptions but currently excludes in-kind share redemptions.
- DCG International Investments could contribute about 200,000 ZEC, although no binding agreement currently exists yet.
Grayscale has filed its fourth amended registration statement for the Zcash Trust, moving forward with plans to list shares on NYSE Arca and offer regulated ZEC exposure.
Grayscale Advances Zcash Trust Listing Plan
Grayscale filed Amendment No. 4 to its Form S-3 registration statement with the U.S. Securities and Exchange Commission. The filing advances its plan to convert the existing Grayscale Zcash Trust into an exchange-traded product.
The trust intends to list its shares on NYSE Arca under the ticker “ZCSH.” However, the amended filing does not mean the SEC has approved the product, and the registration statement must still become effective before the proposed listing can proceed.
The product would hold ZEC directly and seek to reflect the value of those holdings, minus expenses and other liabilities. Investors would therefore receive exposure to ZEC through publicly traded shares rather than directly holding the cryptocurrency.
Grayscale has not disclosed a management fee or a potential fee waiver in the filing. The trust plans to issue an unspecified number of shares on a continuous basis if the registration becomes effective.
ZCSH Would Support Cash and In-Kind Creations
Authorized participants would create or redeem shares in blocks of 10,000, known as baskets. The amended structure permits cash creations and redemptions while also allowing authorized participants or their designated agents to create shares by contributing ZEC.
However, the trust currently “does not permit redemptions of Shares via in-kind transactions.” This means authorized participants cannot receive ZEC directly when redeeming shares under the proposed structure.
The Bank of New York Mellon would serve as administrator and transfer agent. Meanwhile, Coinbase Custody Trust Company would hold the trust’s ZEC, while Coinbase would act as its prime broker.
The product would use the CoinDesk Zcash Benchmark Rate to determine the U.S. dollar value of its ZEC. The benchmark calculates an index price at 4 p.m. New York time on each business day.
DCG Unit Discusses Potential 200,000 ZEC Contribution
Grayscale is also discussing a potential arrangement with DCG International Investments, an indirect subsidiary of Digital Currency Group. Under the proposed transaction, the company could exchange about 200,000 ZEC for shares through an authorized participant or its designated agent.
However, Grayscale stressed that the discussions do not represent a binding purchase agreement. The potential investor could ultimately contribute more, fewer, or no ZEC tokens.
The trust would not register as an investment company under the Investment Company Act of 1940. Grayscale also states that it does not consider the trust a commodity pool under the Commodity Exchange Act.
The SEC has neither approved nor rejected the securities described in the prospectus. Therefore, the latest S-3/A represents another procedural step toward the proposed ZCSH listing rather than final regulatory approval.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
