Digital asset management giant Grayscale has submitted a proposal for a new privacy-focused exchange-traded fund (ETF) that involves the altcoin Zcash (ZEC).
If approved, the Grayscale Privacy ETF’s investment portfolio will consist primarily of investments in data privacy solution providers, cybersecurity firms, blockchain-based privacy solutions and network security companies, according to an N-1A form filed with the U.S. Securities and Exchange Commission (SEC) on Tuesday.
Though the fund will not invest in digital assets directly, it will devote 10% of its portfolio to the Grayscale Zcash Trust (ZCSH), a regulated financial product solely and passively invested in Zcash.
The privacy-focused digital currency jumped more than 20% on the news, surging from trading around $24.24 to a high of $29.21. ZEC has since partially retraced and is trading at $26.89 at time of writing.
In order to be eligible for inclusion in the Grayscale Privacy ETF’s investment portfolio, companies must be publicly listed on a stock exchange and have a $250 million market capitalization.
Grayscale was one of 11 firms that received approval from the SEC in January to launch spot Bitcoin (BTC) ETF. The asset management giant converted its flagship product, the Grayscale Bitcoin Trust (GBTC), into an exchange-traded fund listed on the exchange NYSE Arca.
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