Grayscale submitted a proposal to the U.S. Securities and Exchange Commission to convert its Zcash trust into an exchange‑traded fund that would charge a 2.5% annual fee and permit a Digital Currency Group affiliate to acquire up to 34% of the fund’s shares. The filing, dated August 21, amends the existing trust to rename it ‘The Zcash ETF’ and list the shares on NYSE Arca under the ticker ZCSH. The structure would use authorized participants to create and redeem 10,000‑share baskets when the market price diverges from the net asset value of the Zcash tokens held by the fund. The SEC has not approved or disapproved the amendment, and the securities cannot yet be sold. The proposal seeks to resolve the trust’s historically large price‑tracking gaps, which ranged from a 240% premium to a 55% discount to net asset value between October 2021 and June 2026, with an average premium of 53% and an average discount of 19%. Under the plan, authorized participants would arbitrage price differences by creating or redeeming baskets, aiming to align the ETF price with its net asset value. The trust currently has 4,829,300 shares outstanding, each representing about 0.0805 ZEC. A hypothetical contribution of 200,000 ZEC would convert to roughly 2.485 million shares, representing about 34% of the enlarged share count, assuming no other changes. The filing notes that Digital Currency Group could acquire a majority stake through DCG International Investments Ltd. and other affiliates, potentially giving that entity control over shareholder votes. Grayscale’s discussions with DCG International are nonbinding, and the affiliate may acquire more, fewer, or no shares. The sponsor fee accrues daily at 2.5% per year and is paid in ZEC, gradually reducing the number of tokens represented by each share. For up to 12 months after effectiveness, Grayscale intends to use all fee revenue for marketing and Zcash development initiatives. The arrangement is voluntary, revocable, and the fee remains unchanged. The filing also warns that large sales or perceptions of them could increase volatility and widen discounts. The amendment remains pending SEC review, with no set timeline for effectiveness or market debut.