Grayscale Investments is continuing the process with the U.S. Securities and Exchange Commission (SEC) for its Zcash ($ZEC)-focused investment product. The company has filed its fourth updated S-3/A registration statement for the Grayscale Zcash Trust, proposing a listing on the NYSE Arca under the ticker symbol “ZCSH”.
According to a preliminary prospectus released today, Grayscale plans to rename the existing structure once the registration statement goes through and the shares are listed on the NYSE Arca. The primary purpose of the Trust is to directly hold $ZEC, the native crypto asset of the Zcash network, and offer investors an investment vehicle through which they can be exposed to price movements via the exchange without having to hold $ZEC themselves.
According to the information in the filing, the Trust aims to have its shares traded on the NYSE Arca under the symbol ZCSH. Grayscale also envisions the continuous issuance of shares and their periodic sale to investors. The sale price of the shares will be determined by considering various indicators, including the $ZEC price and the market price on the NYSE Arca.
The application also shared details regarding Trust’s operational structure. Coinbase will act as the product’s prime broker, while Coinbase Custody Trust Company will provide custody services. Bank of New York Mellon is listed as the transfer agent and manager.
Another notable detail in the S-3/A file is the potential investment being considered through a subsidiary linked to Grayscale’s parent company, Digital Currency Group (DCG).
According to the application, the DCG subsidiary in question is in negotiations to acquire approximately 200,000 $ZEC through Trust. However, it was stated that the arrangement between the parties is not yet binding.
*This is not investment advice.