Grayscale Research has put out a bullish case for Zcash (ZEC), arguing the privacy-focused cryptocurrency is undervalued and could challenge Bitcoin’s market dominance over the next five years.
Grayscale Launches First U.S. Zcash ETF ZCSH, Now Listed on NYSE Arca
Grayscale launched the Zcash ETF (ZCSH) on Aug. 25, with the product now trading on NYSE Arca. Converted from the Grayscale Zcash Trust, it is the first U.S. exchange-traded product focused on ZEC. As of Aug.… pic.twitter.com/oGRDyQQuMO
— Wu Blockchain (@WuBlockchain) August 25, 2026
Grayscale’s Head of Research, Zach Pandl, says ZEC has strong odds of competing with Bitcoin due to its privacy features. He pointed to growing demand for financial privacy as AI-powered surveillance becomes more widespread.
Pandl also highlighted Zcash’s ongoing development to guard against quantum computing risks and its improving cross-chain connectivity as reasons for optimism.
Zcash uses “intents” technology, which Pandl says means it doesn’t need widespread merchant adoption. He described it as a “private asset hub with universal connectivity” that both users and AI agents can operate through.
ZEC has already climbed nearly 70% over recent weeks and around 350% year-to-date. Despite that, it still trades at less than 1% of Bitcoin’s total market capitalization.
Grayscale’s model suggests a 2% market share gain could push ZEC above $1,622. If ZEC reaches 10% of Bitcoin’s market cap within five years, the price target rises to $8,100.
On August 26, Grayscale launched ZCSH on NYSE Arca, the first spot Zcash ETF in the United States. The fund was converted from the existing Grayscale Zcash Trust into a full ETF structure.
The ETF recorded $14.8 million in volume on its opening day. It rose more than 3.5% early in the session before reversing to close down 1.54% at $63.10.
The ETF structure gives investors more liquidity than the old trust format, with the ability to create and redeem shares. This can help keep the fund’s price closer to the underlying asset’s net asset value.
ZEC was trading around $790 at the time of reporting, pulling back roughly 7% after a strong weekly rally. The day’s range ran from $754.93 to $847.10.
Futures open interest fell 12% to $1.65 billion in the 24 hours following the ETF launch, with drops across Binance, OKX, and Hyperliquid. However, buying activity in crypto futures markets picked back up in recent hours.
$ZEC with one of the most bullish base breakouts in the entire market.
Leader among the big, liquid coins.
Expecting some chop around this general b/o level, but ultimately much higher. pic.twitter.com/hbYCV2XUbk
— Justin Spittler (@JSpitTrades) August 27, 2026
Analyst Justin Spittler noted on X that $ZEC was showing “one of the most bullish base breakouts in the entire market,” calling it a leader among large liquid coins. He expected some short-term chop around the breakout level but said he was ultimately expecting the price to move much higher.
Trading volume on ZEC dropped as investors waited on PCE inflation data and upcoming crypto options expiry.
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