Winklevoss Files for Zcash ETF Under Ticker WINK

Winklevoss Asset Services has filed an application with the SEC to launch a Zcash ETF on Nasdaq under the ticker WINK. The fund will directly own ZEC, charge an annual fee of 0.25%, and Winklevoss Capital has expressed interest in purchasing up to $100 million worth of shares after launch. ZEC is trading around $1,341 after a rise of more than 700% over the year. Token custody will be provided by Gemini Trust, which is part of the same corporate group as the sponsor, creating a potential conflict of interest. The sponsor was registered in Delaware on October 1, five days before filing the S-1, and Cameron Winklevoss signed the registration as CEO. The fee is accrued daily and can be paid in ZEC or cash. The fund will be able to handle creations and redemptions in both ZEC and cash. Cypherpunk Technologies is named as a partner in the Zcash ecosystem.

The trading start date is not specified as SEC approval is required. Zcash's market capitalization is about $22.3 billion, placing it tenth. At 2:19 UTC on October 7, ZEC was trading at $1,358.20, up 0.8% for the day. The close on October 6 was $1,365.02 compared to $1,438.21 on September 30, with a volume of about $708 million. The $100 million from Winklevoss Capital is not a commitment to purchase. Grayscale ZCSH is already trading on NYSE Arca with a fee of 2.5%, which is significantly higher. Grayscale completed a 3-to-1 stock split, increasing the number of shares from 7.99 million to 23.97 million and reducing NAV from $111.41 to $37.14. DCG invested $100 million in ZCSH on September 8, and the transaction is complete.

Previously, a vulnerability was discovered in the Orchard pool of Zcash: Shielded Labs in May, an emergency upgrade in June, and Ironwood limited deposits in Orchard. There was no evidence of exploitation, but the incident is listed among the risks for WINK. Eric Balchunas from Bloomberg noted that the application was filed exactly 13 years after the brothers' first attempt to create a spot bitcoin ETF.