Grayscale files Zcash ETF designed for biweekly payouts from options premiums

  • Grayscale filed the ZCSH High-Income ETF registration statement with the SEC.
  • The fund would invest at least 80% of assets in options on Zcash exchange-traded products.
  • ZCSH reached $1 billion in assets under management on September 24.

Grayscale filed the proposed ZCSH High-Income ETF with the U.S. Securities and Exchange Commission (SEC) on September 25. The fund would seek income through a synthetic covered-call strategy using options on Zcash exchange-traded products, primarily Grayscale’s existing Zcash ETF, ZCSH, rather than holding Zcash (ZEC) directly. It would make distributions every two weeks, although the filing does not promise a fixed yield and some payments could represent a return of capital. At least 80% of net assets, plus borrowings for investment purposes, would be invested in qualifying options, with derivatives valued at their notional amounts. The strategy could limit gains during sharp rallies while leaving investors exposed to losses in a declining market. Grayscale said the fund would not hold ZEC, operate a digital-asset wallet or control private keys. The filing proposes an effective date about 75 days after submission, around early December, but does not specify a ticker or listing exchange. ZCSH reached $1 billion in assets under management on September 24, while ZEC was trading at $1,532.82, down 3.3% over 24 hours but up 200% year to date.

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