Winklevoss Asset Services has filed for a spot Zcash ETF with the US SEC. The fund would hold ZEC directly and seek a Nasdaq listing under the ticker WINK. Gemini Trust Company would act as custodian, while authorized participants would use cash for share creations and redemptions.
Table of Contents
The S-1 registration statement places the fund among US crypto products seeking direct token exposure. The spot Zcash ETF would not use futures or derivatives to track ZEC.
How Would the Spot Zcash ETF Operate?
As per the suggested structure, Gemini Trust Company will be in charge of the ZEC that backs the ETF shares. In other words, there will be no transfer of ZEC to the authorized participants, and they will simply be buying and selling shares using the money.
In turn, Winklevoss Asset Services will use such money to trade ZEC on the exchange as required by the fund’s requirements. Therefore, this scheme will ensure that the spot Zcash ETF has direct exposure while transactions between the participants are conducted using the money.
Also Read: Polymarket Protocol V2 Targets Nov. 2 Shift With pUSD and Unified Market System
Moreover, the filing lists another company, namely Cypherpunk Technologies, which will provide services related to the Zcash network. While Gemini will still be responsible for custody, Cypherpunk will be doing something different, which is connected to the network.
It should be noted that the registration of the spot Zcash ETF does not imply that the asset is tradable. For trading, the product needs to be approved by the SEC.
Why Is Cypherpunk Included in the Filing?
Cypherpunk Technologies had already invested in Zcash even prior to its participation in the spot Zcash ETF filing. In August, the publicly traded firm on Nasdaq said that it purchased a Zcash mining fleet and hosting deals.
The transaction was worth $33.33 million and was made with companies associated with Winklevoss Capital. Cypherpunk noted that the Bitmain Z15 Pro fleet was being used in U.S.-based facilities.
It estimated that the equipment accounted for around 18% of computing power on the Zcash network. Monthly production of around 7,800 ZEC was anticipated based on mining difficulty and hash rate competition.
According to an SEC filing related to this transaction, payment would be done via a pre-funded warrant on 43,290,042 common shares. The stock of Cypherpunk was valued at $0.77 per share while the exercise price of the warrant was $0.001.
This transaction adds some context to Cypherpunk Technologies’ participation in the spot Zcash ETF filing. This is not connected with its custody services provided by Gemini.
What Is Driving ZEC Market Attention?
ZEC gained more than 5% over 24 hours and traded above $1,375 following the ETF filing. The broader cryptocurrency market also gained nearly 1% during the period.
However, CoinMarketCap report indicated a rise in price from around 1,290-1,300 towards $1,350. The price then pulled back towards $1,320 before rising again towards $1,380.
According to the provided market data, the resistance level stood at 1,375-1,380. Support was found close to 1,355-1,360 followed by another one at 1,340-1,345.
Sustained prices above $1,380 will take the price outside the resistance region. Breaking below $1,355 will see the support region coming into view. The spot Zcash ETF listing and the upcoming NU7 vote add more events to the traders’ list.
When Is the Zcash NU7 Decision?
The Zcash team is set to make the decision about the NU7 mainnet activation height on October 20. The launch scheduled for November 5 relies on the testnet review results.
The proposed plan includes reducing the target block spacing from 75 seconds to 25 seconds. ZEC issuance per day will remain the same because of the reduction in the block reward.
Moreover, at the time of the activation, the upgrade will include the disabling of the version 4 transactions. This will prevent additional spending from the Sprout pool due to the inability of version 5 transactions to do that.
Thus, the ETF of Zcash is launched in a period of high activity for the token and its network. Review of WINK and the NU7 schedule are different events, yet both have become events for the market’s near term.
Also Read: Solana Treasury Firm Authorizes CHAD Buybacks Below $10
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
