Winklevoss-backed Zcash ETF files with SEC for Nasdaq listing

Winklevoss Asset Services has applied to register an exchange-traded fund that would hold Zcash (ZEC) outright and seek listing on the Nasdaq Stock Market under the proposed ticker WINK. The filing, reported by analyst Eric Balchunas, sets out that Gemini Trust Company — an affiliate of the sponsor — would serve as custodian for the fund's ZEC holdings. The ETF would not use leverage or derivatives to meet its investment objective and would levy an annual sponsor fee of 0.25%.

The filing also notes that Winklevoss Capital Fund, via one or more affiliates, has signaled interest in buying up to $100 million of shares in the proposed ETF, although that potential purchase is described as non-binding. The structure would let investors obtain exposure to Zcash through a standard brokerage account instead of buying and storing the cryptocurrency directly.

Zcash is a privacy-focused blockchain that can employ zero-knowledge proofs to hide transaction amounts and the identities of parties involved in shielded transfers. The Winklevoss proposal would join an existing U.S. Zcash ETF: Grayscale’s ZCSH, which is currently trading and recently completed a 3-for-1 share split.

ZEC has experienced substantial price gains over the past year, rising more than 735% and reaching a market capitalization of about $23 billion, according to CoinGecko. At the time of the filing it was trading near $1,354 and ranked as the tenth-largest cryptocurrency by market value.