ZEC Drops 14.03% Following ETF Application and Buterin’s Caution on Privacy
- Grayscale files to convert Zcash Trust into first U.S. Zcash spot ETF, signaling growing institutional interest in privacy-focused crypto. - Zcash adoption rises with 30% shielded transactions, but ZEC faces 30% 7-day price drop amid bearish market pressure. - ETF aims to replicate Bitcoin Trust's success, offering regulated access to ZEC as it surges 553% year-to-date despite recent volatility. - Vitalik Buterin warns against weakening Zcash's privacy features, adding uncertainty as asset tests $300 sup
Grayscale Seeks to Launch First U.S. Zcash Spot ETF
On November 26, 2025, Grayscale submitted an application to the U.S. Securities and Exchange Commission, aiming to transform its Zcash Trust into the nation’s inaugural spot ETF dedicated to Zcash (ZEC). This initiative underscores Grayscale’s confidence in the increasing interest surrounding privacy-centric digital assets, especially as ZEC experiences notable momentum in 2025. If approved, this ETF would mark the first Zcash-focused product to be listed in the United States, potentially signaling a pivotal shift for privacy coins within institutional finance.
Rising Adoption and Market Performance
Once regarded as a specialized privacy coin, Zcash has seen substantial growth in both usage and value. Approximately 30% of all ZEC transactions now utilize its signature shielded, encrypted transfer method. This surge in adoption has been matched by impressive price gains, with Zcash outperforming leading cryptocurrencies such as Bitcoin and Ether over the past year. However, the recent ETF filing coincides with a period of sharp price correction for ZEC, which has dropped 14.03% in the last 24 hours and 30.2% over the past week as of December 1, 2025.
Building on Grayscale’s ETF Strategy
Grayscale’s move follows its earlier success in converting its Bitcoin Trust into an ETF. The Zcash Trust has long provided institutional investors with exposure to ZEC, and the proposed ETF aims to enhance liquidity and tradability. Should the SEC grant approval, investors would gain a regulated and transparent way to invest in ZEC, potentially expanding its reach within mainstream financial markets.
Market Outlook and Analyst Perspectives
Experts suggest that a green light for the Zcash ETF could legitimize privacy coins further and attract significant institutional investment. Nevertheless, the filing comes amid a bearish trend for ZEC, which is currently trading below $400 and facing heightened selling pressure. The cryptocurrency is now approaching the critical $300 support level, a barrier it has previously struggled to maintain.
Community Concerns and Industry Voices
Adding to the cautious mood, Ethereum co-founder Vitalik Buterin recently advised the Zcash community to be wary of governance proposals that might compromise the coin’s privacy protections. His warning highlights ongoing debates about maintaining strong encryption and the core values that have attracted many to Zcash.
Looking Ahead
Despite recent price swings, Zcash remains up an impressive 553.81% year-to-date, reinforcing its reputation as a high-growth privacy asset in a challenging crypto market. Grayscale’s ETF proposal and Buterin’s remarks reflect Zcash’s evolution from a niche privacy project to a potential mainstay in the digital currency landscape.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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