Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to convert its Zcash Trust into the first U.S. spot ETF for a privacy-focused cryptocurrency. The filing, submitted on May 8, aims to capitalize on growing institutional interest in privacy coins like Zcash, which surged in value following the announcement. If approved, this ETF would mark a significant milestone as the first regulated spot ETF tied to a privacy coin in the U.S. Zcash, known for its privacy features, presents unique challenges for regulated ETF products, including custody and compliance issues. Despite these hurdles, the SEC's decision to conclude its review of privacy coins without enforcement action against Zcash-related entities has reduced regulatory uncertainty. Grayscale's move is part of a broader strategy to expand its crypto ETF offerings, following similar structures used for its Bitcoin and Ethereum products.