The Barry Silbert-led investment firm Grayscale has submitted an official filing for the Zcash Investment Trust with the U.S. Securities and Exchange Commission (SEC).
As first uncovered by WhalePool, a prominent cryptocurrency trading group, Grayscale filed a “Notice of Exempt Offering of Securities” with the SEC earlier this week. The filing states the firm’s intent to sponsor a trust that will invest in Zcash, an anonymity-centric cryptocurrency that just celebrated its first birthday and currently holds the 16th spot in the market cap rankings with a total valuation of about $591 million.
The filing indicates that the trust already has nine investors who have contributed a combined total of more than $11.6 million, although the minimum investment threshold is much lower at $10,000. Initially, the trust will only be available to accredited investors.
Grayscale — a subsidiary of the Digital Currency Group — recently surpassed $1 billion in assets under management (AUM). Most of those assets are concentrated in the Bitcoin Investment Trust (OTC: GBTC), a publicly-listed security that is currently traded over-the-counter (OTC) and can be purchased through any brokerage account. Wall Street analyst and bitcoin bull Tom Lee recently called GBTC an “attractive” investment, predicting that it could triple in value over the course of the next five years.
Although many firms have filed to launch exchange-traded funds (ETFs) that either track the price of bitcoin or hold the asset directly, the SEC has yet to approve one. Consequently, GBTC remains the only U.S. exchange-listed vehicle that gives institutional investors exposure to crypto assets.
Grayscale has also sponsored the Ethereum Classic Trust, although, like the Zcash trust, this product is currently only available to accredited investors. Since launching in April of this year, the underlying assets represented by Ethereum Classic Trust shares have risen in value from $4.30 to $10.14 and the trust’s AUM has tripled to about $36 million.
The firm has not yet confirmed the news of the Zcash Investment Trust, but it did hint that it would announce “additional investment products” in a tweet posted two weeks ago.