Grayscale applies for privacy-themed index ETF Also owns Zcash investment trust

9 months ago 67

Aiming to expand ETF products

Grayscale, an American crypto asset (virtual currency) investment company that provides the Bitcoin spot ETF “GBTC,” has filed an application for a new virtual currency-related index ETF.

The new submission is the “Grayscale Privacy ETF” and will be submitted on February 20th.

Grayscale files for Privacy ETF…

Index-based & would track cos involved in data security & protection, cybersecurity products & services incl blockchain-based technology solutions, etc.

Would also hold Grayscale Zcash Trust.

IMO, smart move for Grayscale to expand ETF lineup. pic.twitter.com/sS0cjDuh7U

— Nate Geraci (@NateGeraci) February 22, 2024

The Grayscale Privacy ETF is an index-based fund designed to track the performance of companies within five major subthemes of the data privacy sector, including: Data Services Solutions, Cyber Services; – Providers, blockchain-based privacy solutions, network and communications security providers, and privacy protection protocols.

To be included in the index, companies must derive at least 50% of their revenue from these subthemes.

In addition to holding company stocks, Grayscale Privacy ETF also owns Grayscale's own mutual fund “ZCSH,'' which invests in the anonymous stock Zcash. It will account for about 10% of the portfolio.

Following news of the filing, Zcash's price rose by 15% at one point.

Regarding the handling of anonymous stocks, there is a hurdle due to unclear regulations. Major exchanges such as OKX and Upbit have successively delisted stocks such as Zcash and Monero. Meanwhile, Coinbase still offers the ability to buy and sell Zcash.

connection: Major virtual currency exchange OKX plans to delist almost all anonymous currencies