Digital asset management giant Grayscale has submitted a proposal for a new privacy-focused exchange-traded fund (ETF) involving the altcoin Zcash (ZEC).
If approved, the Grayscale Privacy ETF’s investment portfolio will primarily consist of investments in data privacy solution providers, cybersecurity companies, blockchain-based privacy solutions and network security companies. N-1A form filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday.
Although the fund will not invest directly in digital assets, it will allocate 10% of its portfolio to this Grayscale Zcash Trust (ZCSH), a regulated financial product that invests exclusively and passively in Zcash.
The privacy-focused digital currency jumped more than 20% on the news, rising from trading around $24.24 to a high of $29.21. ZEC has since partially recovered and is trading at $26.89 at the time of writing.
To be eligible for inclusion in the Grayscale Privacy ETF’s investment portfolio, companies must be publicly traded and have a market capitalization of $250 million.
Grayscale was one of eleven companies to receive approval from the SEC in January to launch a spot Bitcoin (BTC) ETF. The asset management giant converted its flagship product, the Grayscale Bitcoin Trust (GBTC), into an exchange-traded fund listed on the NYSE Arca stock exchange.
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Generated image: Midjourney