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Zcash News Today: Grayscale's Zcash ETF Ignites Discussion: Privacy Trailblazer or Competitor to Bitcoin?

Zcash News Today: Grayscale's Zcash ETF Ignites Discussion: Privacy Trailblazer or Competitor to Bitcoin?

Bitget-RWA2025/11/26 17:04
By:Bitget-RWA

- Grayscale files first U.S. Zcash ETF, leveraging ZEC's 1,000% price surge and privacy-focused zero-knowledge proofs. - Zcash's "selective privacy" features attract investors like Winklevoss twins, who call it "encrypted Bitcoin" for private transactions. - Critics warn Zcash could fragment Bitcoin's market dominance, while skeptics dismiss hype as fabricated marketing claims. - Grayscale's strategy shifts toward tokenized infrastructure assets, positioning Zcash alongside Dogecoin/XRP in expanding ETF po

Grayscale Investments has submitted an application to introduce the first U.S.-listed exchange-traded fund (ETF) centered on

(ZEC), a cryptocurrency known for its privacy features that has in value over the last year. Detailed in a Securities and Exchange Commission (SEC) S-3 registration, this initiative represents Grayscale's ongoing effort to transform its private trusts into publicly traded products, for and . Zcash's dramatic price increase has fueled discussion in the crypto sector, with some experts cautioning it might "divide support" from Bitcoin, while others believe it serves as a useful tool for confidential transactions .

The ETF proposal highlights Zcash's rising acceptance in mainstream finance, especially as interest in zero-knowledge encryption grows. In its submission, Grayscale pointed out that Zcash stands apart from Bitcoin by providing "optional privacy-enhancing capabilities," allowing users to conceal transaction information through zero-knowledge proofs

. This has attracted the attention of investors and tech leaders, including the Winklevoss twins, who recently established Cypherpunk Tech, a treasury company focused on Zcash. They referred to Zcash as "encrypted Bitcoin," suggesting it complements Bitcoin's value storage function while excelling in private payments .

Nonetheless, Zcash's rapid ascent has also sparked some worries. Bloomberg ETF analyst Eric Balchunas compared Zcash to a "third-party candidate" in a market dominated by Bitcoin,

. Detractors have accused Zcash supporters of artificially generating excitement, pointing to marketing efforts and misleading headlines that claimed Fidelity analysts predicted ZEC would reach $100,000 . Meanwhile, industry voices such as Arman Meguerian and Samson Mow have dismissed the idea that Bitcoin loyalists are moving to Zcash, calling it more of a joke than a real competitor .

Grayscale's Zcash ETF fits into its broader push into tokenized finance, where it has also positioned

(LINK) as a "vital bridge" connecting digital assets to traditional financial systems . The company believes that turning real-world assets into blockchain tokens will drive future growth, with Chainlink's technology enabling cross-chain transactions and regulatory compliance . This approach highlights Grayscale's emphasis on infrastructure tokens over layer-1 blockchains, a trend seen in its expanding ETF lineup for Dogecoin, , and now Zcash .

The possible approval of the Zcash ETF comes at a time when the broader crypto market is experiencing a downturn,

. Although spot ETFs do not ensure price increases, they could make it easier for both institutional and individual investors to access these assets. Trading in Zcash and XRP derivatives , indicating anticipation in the market. Still, uncertainty about demand remains, with early trading activity and inflows likely to determine the ETF's performance.

As the SEC evaluates Grayscale's proposal, debate around Zcash continues. Supporters highlight its importance for privacy in a world of increasing surveillance and AI-powered data analysis

. Critics, on the other hand, warn of speculative excess, on platforms like OKX. The resolution of this debate—and the ETF's outcome—could influence the trajectory of privacy coins as regulations evolve.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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