Custody
Grayscale Zcash Trust May Receive 200,000 ZEC from DCG Affiliate
Grayscale Investments is exploring a significant contribution to its Zcash Trust, potentially receiving around 200,000 ZEC from a subsidiary of Digital Currency Group (DCG). This development comes as Grayscale aims to list the trust on NYSE Arca.
According to an amended filing with the SEC, discussions are ongoing between Grayscale and DCG International Investments regarding this potential contribution. However, the agreement is non-binding, meaning the actual amount contributed could vary.
Grayscale's Zcash Trust has filed its fourth amendment to the registration statement on August 18, intending to offer shares under the ticker ZCSH. The trust plans to issue shares continuously, with authorized participants able to create and redeem shares in baskets of 10,000.
While the trust currently does not allow in-kind redemptions, it will support cash creations and redemptions. Coinbase is set to act as the prime broker, with Coinbase Custody Trust Company serving as custodian and Bank of New York Mellon as transfer agent and administrator. The registration statement is still under SEC review, and shares cannot be sold until it becomes effective.
FAQ
What is the Grayscale Zcash Trust?
The Grayscale Zcash Trust is an investment vehicle that allows investors to gain exposure to Zcash (ZEC) through shares that represent the underlying cryptocurrency.
How much ZEC is Grayscale potentially receiving from DCG?
Grayscale is exploring a potential contribution of around 200,000 ZEC from a subsidiary of Digital Currency Group (DCG).
What does the non-binding agreement mean for the contribution?
The non-binding agreement means that while discussions are ongoing, the actual amount of ZEC contributed could vary and is not guaranteed.
What is the ticker symbol for shares of the Zcash Trust?
The shares of the Zcash Trust are intended to be offered under the ticker symbol ZCSH.
Who are the key partners involved in the Grayscale Zcash Trust?
Key partners include Coinbase as the prime broker, Coinbase Custody Trust Company as custodian, and Bank of New York Mellon as transfer agent and administrator.