Grayscale Zcash Trust filing reveals potential 200,000 ZEC contribution from DCG affiliate

A Digital Currency Group affiliate is considering contributing approximately 200,000 ZEC to Grayscale’s Zcash Trust in exchange for shares, according to an amended SEC filing as the trust seeks an NYSE Arca listing.

Grayscale Investments Sponsors is in discussions with DCG International Investments, a wholly owned indirect subsidiary of Digital Currency Group, over the potential contribution. The transaction would take place following the effectiveness of the registration statement.

The discussions are not binding, meaning the DCG affiliate could ultimately contribute more, fewer, or no ZEC. The resulting shares would carry the same economic terms as other shares in the trust.

Grayscale filed its fourth amendment to the Zcash Trust registration statement with the SEC on August 18. The trust intends to list its shares on NYSE Arca under the ticker ZCSH and issue an indefinite number of shares on a continuous basis.
Shares would be offered through authorized participants in baskets of 10,000 shares. The structure would support cash creations and redemptions as well as in kind creations in exchange for ZEC. The trust does not currently permit in kind redemptions.

Coinbase would serve as prime broker, while Coinbase Custody Trust Company would act as custodian. Bank of New York Mellon would serve as transfer agent and administrator.

The registration statement remains subject to SEC review. The preliminary prospectus states that the securities cannot be sold until the registration statement becomes effective and notes that the SEC has not approved or disapproved the shares.

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