Grayscale files Privacy ETF Form N-1A with Zcash Trust Allocation

Grayscale submitted Form N-1A to the US Securities & Exchange Commission. The idea is to seek approval for a Privacy ETF. The product will be dedicated to the realms of cybersecurity and privacy, making Grayscale the first player in the market to introduce such a product. The performance of companies will be measured across various sectors, namely privacy, data security, artificial intelligence, edge computing, and cybersecurity products and services.

The likes of Nate Geraci, the co-founder of the ETF Institute have hailed the initiative. Nate called it a smart move, adding that it makes up for the strategic inclusion of Grayscale Zcash Trust within the fund.

Its filing with the Commission also revealed plans to allocate 10% to Grayscale Zcash Trust. It is tasked with investing in ZEC, or Zcash, a privacy-focused cryptocurrency. What makes it unique in the market is the fact that it emphasizes aspects of privacy and security in an era when the usage of the Internet is constantly on the rise across the world, putting more people at risk of succumbing to wrong incidents.

David LaValle, the Global Head of ETFs with Grayscale, said that the performance of the product will mirror the performance of companies across five sub-sectors.

Grayscale can effectively expose traders to digital assets through the product’s launch without requiring them to expose them to such assets directly. Traders would experience minimal or negligible repercussions from market volatility. Additionally, the community is spared the trouble of investing directly in digital assets. Instead, they may concentrate on ETPs and organizations incorporating digital assets.

The prospectus also mentioned that funds will not be invested in ICOs – Initial Coin Offerings.

ZEC, or Zcash, is currently exchanging hands at $26.86, a drop of 2.40% in the last 24 hours. However, it represents a rise of 17.63% in the last 7 days, despite a slip of 22.72% in its 24-hour volume. Zcash coin price prediction estimates Zcash to end the year at $55, or $50, assuming the development works favorably. That would set the stage for a rise to $110 by the end of this decade—that is, by the end of 2030.

Grayscale remains optimistic about the upcoming Bitcoin Halving event, citing that fundamental on-chain activity and positive market structure make this year’s Bitcoin Halving different on a fundamental level. The same was concluded after conducting a research study. Bitcoin Halving is tentatively scheduled to happen between April 19, 2024, and April 21, 2024.

Until then, Grayscale is focused on bringing the Privacy ETF to life. It has submitted the proposal to the agency and now awaits its approval. When, and if, granted, Grayscale would continue its progress with Privacy ETF to become the first ever player in the market to feature it.