ZEC expands institutional momentum as Winklevoss files for Zcash ETF

Winklevoss Asset Services, co-owned by crypto exchange Gemini founders Cameron and Tyler Winklevoss, filed a Form S-1 registration statement with the US Securities and Exchange Commission (SEC) on Tuesday for the Winklevoss Zcash (ZEC) ETF.

Winklevoss twins target Zcash ETF following S-1 filing

The filing proposes a fund that would hold ZEC and seek to track its price. If approved, the shares are expected to trade on the Nasdaq Stock Market under the ticker WINK, subject to regulatory approval.

Gemini Trust Company, an affiliate of the sponsor, would serve as the fund’s custodian and hold the Trust’s ZEC. The ETF would offer an unspecified number of shares on a continuous basis, with authorized participants primarily creating and redeeming shares through cash transactions. The sponsor fee is set at 0.25% annually.

The filing names Cypherpunk Technologies as the Trust’s Zcash Ecosystem Partner, with responsibilities including protocol guidance and matters involving ZEC holders. Winklevoss Capital Fund also indicated non-binding interest in purchasing up to $100 million of the ETF’s shares through its affiliates.

The ETF filing comes as institutional access to Zcash expands in the US market. Grayscale launched the first US spot Zcash ETF (ZCSH) in August following the token's positive performance.

The ETF debuted with roughly $304 million in assets and grew to nearly $1 billion by September as ZEC extended its rally.

Momentum has since declined, with ZCSH recording about $3.5 million in outflows on Monday. The withdrawals followed back-to-back outflows last week, totaling $93 million. The negative flows have reached $58.76 million since the start of October, although cumulative net inflows remain positive since launch.

Mining expansion adds to Zcash institutional momentum

Institutional activity around Zcash is also extending beyond investment products. Fortitude Mining Holdings, a Zcash-focused mining company, signed a non-binding letter of intent (LOI) with BITMAIN Technologies on Monday for priority access to its next-generation Zcash mining equipment.

The agreement includes an indicative commitment of up to $100 million, with shipments expected to begin in Q2 2027. Fortitude would provide a refundable $20 million deposit, with Digital Currency Group expected to fund the payment in ZEC through an expanded credit facility.

The development comes as Zcash extends its rally, which began in May, although the price took flight in late August. ZEC rallied to a cycle high of $1,664 last week before retracing below $1,400.

The token is up 7.5% over the past 30 days, with a 164% gain since the beginning of the year. However, ZEC remains 58.1% below its all-time high of $3,191, set in late October 2016.

ZEC is trading at $1,350, up 1% in the past 24 hours at the time of writing.