Grayscale pledges $1 million to Zcash nonprofits as ZEC falls 11%
In brief
- Grayscale plans to direct $1 million in Zcash ETF (ZCSH) fees to ecosystem nonprofits and initiatives.
- Four groups, including the Zcash Foundation and Shielded Labs, have already received $100,000 each.
- The fee commitment is voluntary; Grayscale can change or end it at any time.
- ZEC fell 11.3% over 24 hours to about $1,043 on Tuesday, according to CoinGecko.
Where the money goes
Grayscale has already awarded $100,000 each to four groups: the Zcash Foundation, Pretty Good Policy for Zcash, Shielded Labs and Project Tachyon. The funding comes from fees on The Zcash ETF.
The bigger piece is the fee pledge. Grayscale said it intends to reinvest all sponsor fees it collects from the fund (for up to its first year as an exchange-traded product) into developing, marketing and educating people about the network.
It's voluntary, though, and Grayscale can change or end it at any time.
The firm also launched Zcash Invest, an educational website and social media presence, alongside a national ad campaign called "Zcash: The Next Era of Crypto" that kicked off with a Wall Street Journal wrap. The ads will run in print, outdoor, digital, streaming and social channels, with a zebra motif drawn from the Zcash community.
“Financial privacy is becoming essential as more economic activity moves onchain and AI makes it easier to analyze,” said Steve Vanourny, Grayscale’s head of index.
A bumpy road to listing
The Zcash ETF listed on NYSE Arca in August. Three months before that, a critical flaw in Zcash's shielded pool sent ZEC down about 50%, and a fix arrived in July, Decrypt reported. Grayscale later split the fund's shares to make them more affordable for investors.
It isn't the only product in the lane. The Winklevoss twins are working on another Zcash ETF, and Europe's first Zcash exchange-traded product has already launched.
ZEC slips below $1,000
ZEC briefly dipped below $1,000 on Tuesday before landing around $1,043, according to CoinGecko data cited by Decrypt. That's down roughly 19% over 30 days and well below its October highs above $1,500. Over a full year, it's still up about 75%.
Leverage is the other number to watch. Decrypt put Zcash perpetual futures open interest at about $2.3 billion, and noted the token has tumbled before after leverage built up during its rally.
Frequently asked questions
Where is Grayscale's $1 million for Zcash coming from?
The funding comes from fees on The Zcash ETF, which trades under the ticker ZCSH. Grayscale said it intends to reinvest all sponsor fees it collects from the fund, for up to its first year as an exchange-traded product, into developing, marketing and educating people about the network.
Which groups have received Grayscale's Zcash grants so far?
Grayscale has already awarded $100,000 each to four groups: the Zcash Foundation, Pretty Good Policy for Zcash, Shielded Labs and Project Tachyon. The commitment is voluntary, and Grayscale can change or end it at any time.
