Grayscale will reinvest all sponsor fees from its Zcash ETF into the network and has issued four $100,000 grants, while the fund sees its assets shrink.
Grayscale Investments announced that it will allocate $1 million to support the Zcash ecosystem, with the money coming from sponsor fees collected on its Zcash exchange‑traded fund (ETF) during the fund’s first year. The firm also launched an education platform called “Zcash Invest” and a national advertising campaign titled “Zcash: The Next Era of Crypto.”
According to Decrypt, the $1 million will be split into four equal grants of $100,000 each, awarded to the Zcash Foundation, policy group Pretty Good Policy for Zcash, Swiss‑based Shielded Labs, and Project Tachyon, a scaling effort led by a Zcash co‑founder. The grants are intended to fund development, policy advocacy, and scaling work within the privacy‑focused network.
Cryptopolitan reported that the Zcash ETF (ticker ZCSH), which began trading on NYSE Arca in August, has been losing assets. On November 5 the fund recorded a net outflow of roughly $10.99 million, the largest single‑day withdrawal among U.S. altcoin ETFs, leaving it with about $724.2 million in net assets. Grayscale’s own fund page lists approximately $675.7 million under management as of early November.
A rival proposal from Winklevoss Asset Services seeks SEC approval for a spot Zcash ETF that would charge a 0.25% annual sponsor fee—one‑tenth of Grayscale’s 2.5% fee. The Winklevoss fund would list on Nasdaq and hold ZEC directly with Gemini Trust Company as custodian, according to Cryptopolitan.
Investors and observers should monitor the SEC’s decision on the Winklevoss spot Zcash ETF, the impact of Grayscale’s education and advertising push on Zcash adoption, and whether the outflows from the existing Zcash ETF stabilize as the grant program and marketing campaign take effect.
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