Winklevoss-backed Zcash ETF files for Nasdaq listing

The proposed fund would track Zcash’s price by holding the cryptocurrency directly, according to its registration statement filed with the U.S. Securities and Exchange Commission.

Winklevoss Asset Services would sponsor the ETF, while affiliate Gemini Trust Company would custody its ZEC holdings. The fund would charge an annual sponsor fee of 0.25% and would not use leverage or derivatives.

Winklevoss Capital Fund, through one or more affiliates, has indicated interest in buying up to $100 million in ETF shares. The filing described the potential investment as nonbinding.

The ETF would give investors exposure to Zcash through a traditional brokerage account without requiring them to buy or store the cryptocurrency directly. Zcash uses zero-knowledge proofs, a cryptographic technology that can conceal transaction amounts and the identities of senders and recipients in shielded transactions.

The proposed fund would join Grayscale’s Zcash ETF, which trades in the United States under the ticker ZCSH. Grayscale recently announced a three-for-one share split for the fund.

Zcash has gained more than 735% over the past year, according to CoinGecko data. The cryptocurrency traded at about $1,354 on Tuesday, giving it a market capitalization of approximately $23 billion and making it the 10th-largest cryptocurrency by market value.