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 a 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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