Zcash Soars 48% Toward Bitcoin Territory as Grayscale ETF Effort Gains Attention
- Zcash surged above $800, surpassing its January 2018 record as futures trading exploded and Grayscale advanced its bid for a spot ETF.
- ZEC jumped 38% on Saturday as “next Bitcoin” speculation, billions in derivatives volume and renewed ETF optimism fueled the rally.
- The privacy coin follows several elements of Bitcoin’s model, including a 21 million supply cap, proof-of-work mining and halving cycles, while adding shielded transactions for privacy.
- Zcash’s recent technical developments include the Tachyon upgrade and work aimed at improving the network’s resilience against potential quantum-computing threats.
- Saturday’s rally pushed ZEC beyond its previous record near $800 from January 2018 and above the roughly $750 level reached last November.
- The token fluctuated between $589 and $851 over 24 hours, representing a swing of about 45%.
- Digital Currency Group has played a role in several recent Zcash developments through its ownership of Grayscale.
- Grayscale submitted a fourth amendment on Aug. 18 seeking to transform its Zcash Trust into a spot ETF trading on NYSE Arca under the ZCSH ticker.
- The filing marks another step toward the proposed ETF, though the product has not been approved and remains under SEC review.
- The filing further disclosed that DCG International Investments is in non-binding discussions to buy approximately 200,000 ZEC through the trust, worth around $163 million at Saturday’s price.
- Zcash futures volume reached about $4.55 billion Friday, dwarfing spot-market volume of roughly $553 million, while open interest stood near $1.35 billion.
- The token recorded about $2.24 billion in trading volume over the next 24 hours, equal to nearly 16% of its total market capitalization.
- The surge in leveraged positions can boost upside momentum but also leave the market exposed to sharp declines if traders rush to unwind.
- Zcash saw that risk play out in June when a vulnerability in its Orchard shielded pool triggered a major sell-off.
- ZEC now carries a market capitalization of roughly $13.87 billion, ranking it 12th among cryptocurrencies and making it the largest privacy-focused asset by market value.
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