Mainstreaming Cryptocurrencies: Grayscale Launches Zcash Investment Trust

Mainstream accredited investors can now have exposure to anonymous cryptocurrency Zcash thanks to Grayscale's latest offering, the Zcash Investment Trust.

Prominent digital assets manager Grayscale Investments LLC has announced the launch of a new cryptocurrency investment vehicle. The Zcash Investment Trust is now live for qualified investors to diversify into ZEC, the anonymous cryptocurrency that powers the Zcash Network. The trust is an addition to two other flagship digital currency investment vehicles dedicated to Bitcoin and Ethereum classic.

Barry Silbert, who heads the Digital Currency Group, that wholly owns Grayscale LLC said of the the trust:

"This year has demonstrated that digital currency is a new asset class investors are excited about that is not correlated with other asset classes. By expanding the universe of products to invest in this asset class, we think we'll bring new investors in."

Just like with the Bitcoin Investment Trust and Ethereum Classic Trust, investors will get indirect exposure to the underlying anonymous cryptocurrency through shares strictly available to accredited investors. They will also enjoy tax exemptions under IRA, ROTH IRA, and other tax-advantaged accounts.

This announcement follows a filing for a Notice of Exempt Offerings of Securities with the US Securities Exchange Commission on October 25  seeking permission to create a ‘pooled investment fund' solely for Zcash. Investors can now buy shares at a minimum buy-in of $10,000. Already, the vehicle had attracted $11.5 million in seed by the time of filing for review.

Eventually, the company intends to list the shares for trading on the secondary market after a 1-year lock-up period. 

Grayscale has made a name for itself as a professional packager of digital currencies into traditional investment vehicles. Silbert said the move to add Zcash as its third digital currency investment product was because "[they were] excited about the potential for a privacy-focused digital currency and blockchain," adding that there was plenty of utility and demand for privacy-enhancing features.

With this latest addition, Grayscale assets under management round up to over $1.3 billion.

The price of Zcash jumped from $243 to $275 in the hours leading up to the announcement until publishing time.