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Grayscale has announced that The Zcash ETF will begin trading on NYSE Arca on August 25 under the existing ZCSH ticker, completing the conversion of its Zcash Trust from an OTCQX-traded product.
The launch announcement follows a post-effective amendment and final prospectus filed on August 24. The prospectus states that ZCSH shares have been approved for listing on NYSE Arca.
August 24 Amendment Became Effective Immediately Upon Filing
Grayscale filed Post-Effective Amendment No. 1 to its Form S-3 under Securities Act Rule 462(d) on August 24.
The SEC accepted the amendment at 4:11 p.m. Eastern time, and it became effective immediately upon filing. Its purpose was limited to adding two exhibits: an amended Certificate of Trust and an amendment to the trust agreement. It did not otherwise modify Part I or Part II of the registration statement.
A final Rule 424(b)(3) prospectus was accepted minutes later. It confirms that the trust changed its legal name from Grayscale Zcash Trust to The Zcash ETF on August 24 and that the shares were approved for NYSE Arca listing under ZCSH.
ZCSH Adds 10,000-Share Creation and Redemption Baskets
The conversion adds an ongoing creation and redemption program intended to help keep the market price of ZCSH closer to the value of the ZEC held by the trust.
Authorized participants transact in baskets of 10,000 shares. The prospectus permits cash creations and in-kind creations using ZEC, while redemptions are currently limited to cash orders. In-kind redemptions are not permitted at present.
Cash redemptions also require approval from the sponsor on a case-by-case basis. The prospectus warns that limits on creation or redemption activity could reduce the effectiveness of the arbitrage mechanism and allow shares to trade at premiums or discounts to NAV.
August 25 Launch Ends ZCSH’s OTCQX Phase
ZCSH previously traded on OTCQX under the same ticker. Grayscale had said on August 21 that it expected the move to NYSE Arca on or about August 25, subject to remaining regulatory approvals.
Grayscale’s August 25 announcement now moves the status beyond that earlier conditional timetable, saying the converted fund begins trading on NYSE Arca today.
The filings establish the fund’s creation and redemption framework, but they do not disclose whether an authorized participant has already submitted or completed the first basket order.
