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Grayscale Launches Zcash ETF After Critical Privacy Flaw Patch

Grayscale launches Zcash ETF post vulnerability patch, offering secure spot exposure.

  • Grayscale’s ZCash fund began trading Tuesday on NYSE Arca under the ticker ZCSH.
  • The product began as a private placement in October 2017.
  • Its listing follows the disclosure and patching of a critical vulnerability in Zcash’s shielded transaction system.

Grayscale’s Zcash Exchange Traded Fund began trading Tuesday on NYSE Arca, listing a nine-year-old investment product months after developers disclosed and patched a critical vulnerability in the privacy coin’s shielded transaction system. Trading under the ticker ZCSH, the world’s first exchange-traded product offering spot Zcash exposure allows investors to track the price of ZEC through brokerage accounts without having to buy or store the token themselves.

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“Grayscale has a long history of identifying emerging technologies and investment themes early, and our nine-year history operating this fund is the clearest signal of demand,” Grayscale Head of Index Steve Vanourny told Decrypt. ZCSH began as the Grayscale Zcash Trust in October 2017, with Grayscale filing with the Securities and Exchange Commission in November to convert the trust into an exchange-traded fund.

Vanourny said Zcash’s maturity, privacy features, and investor demand for assets beyond Bitcoin and Ethereum made this the right time to list the fund. “Investors increasingly want exposure to digital assets beyond Bitcoin and Ether through the brokerage accounts they already use, and Zcash occupies a distinctive place in that landscape,” he said.

In May, security researcher Taylor Hornby used Anthropic’s Claude Opus 4.8 to discover a four-year-old vulnerability in Zcash’s Orchard shielded pool that could have allowed an attacker to create counterfeit ZEC. Developers deployed an emergency patch on June 1, but the network’s privacy features made it impossible to determine cryptographically whether the flaw had been exploited.

Consequently, in July, Zcash activated the Ironwood upgrade, replacing Orchard with a new shielded pool. The upgrade added accounting rules that prevent more ZEC from leaving the retired pool than entered it, trapping any counterfeit coins that may exist. Looking ahead, Vanourny said Grayscale will judge Zcash’s progress by its adoption, utility, and network security rather than the token’s price.

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