- ZEC recorded a new eight-year high price above $880 in anticipation of the Grayscale Zcash ETF’s launch on Tuesday.
- The ETF’s success could push the coin toward $900, negating technical indicators suggesting a correction of up to $750.
Zcash (ZEC) reached a new eight-year high amid anticipation of the Grayscale Zcash Exchange-Traded Fund’s (ETF) launch on NYSE Arca. The privacy-focused decentralized cryptocurrency reached the $880 mark heading into Monday and continues to hold the line around $800 per coin as the new investment instrument debuts on Tuesday.
Zcash Price Short-Term Outlook
Zcash maintained its resilience after expected profit-taking from investors as it soared from roughly $500 over the past week. So far, it held the line between $799.36 and $867.66 in the last 24 hours, teasing another retest at the key resistance zone between $870 and $875.
However, overbought signals on the short-term Relative Strength Index (RSI) indicate a likely near-term correction that could pull it into the $800 range. It could go as low as $750 if a deeper correction ensues.
Still, ZEC’s fundamentals against the macro backdrop suggest long-term tailwinds remain intact. One key driver is the Grayscale Zcash ETF, which trades under the ticker ZCSH. The product’s high demand upon launch could suppress short-term selling pressure and instead push the coin to $900.
The Grayscale Zcash ETF
Grayscale, the largest digital asset-focused investment platform, launched its original Zcash Trust in October 2017. The product was one of the first investment vehicles offering investors regulated exposure to ZEC, accumulating up to $260 million in assets under management (AUM) since its market rollout.
The company’s conversion of the product into an ETF will enable smoother creation and redemption mechanisms managed through authorized participants Jane Street Capital and Virtu Americas. It essentially addresses key structural frictions that have limited its institutional liquidity.
Coinbase Custody Trust Company, a subsidiary of the largest crypto exchange in the US by trading volume, users, and AUM, serves as ZCSH’s custodian. Meanwhile, BNY Mellon, a global financial services platform, is both the product’s transfer agent and administrator.
Like other crypto ETF’s, Grayscale’s Zcash ETF tracks the market value of its underlying asset, ZEC, through an established benchmark index. In this case, it uses the CoinDesk Zcash Benchmark Rate to ensure that its share price closely mirrors ZEC’s spot rate.
The Grayscale Zcash ETF charges a hefty 2.5% management fee, which it aims to allocate to support the Zcash ecosystem’s growth over the next 12 months.
