Grayscale has disclosed talks with a Digital Currency Group subsidiary over a possible contribution of about 200,000 ZEC to its Zcash Trust, according to an Aug. 18 amendment tied to the fund’s planned move to NYSE Arca. The trust is intended to list under the ticker ZCSH, which is also used for its shares on OTCQX.

The filing says Grayscale Investments Sponsors is discussing a transaction with DCG International Investments Ltd. in which the affiliate would acquire shares through an authorized participant in exchange for the tokens. Grayscale also emphasized that the discussions are non-binding and may result in the purchase of more shares, fewer shares, or none at all.

Potential deal could reshape ownership

If the contribution is completed, DCG could end up with a controlling position in the trust. The filing says DCG may, directly and indirectly through the potential investor and other affiliates, own a majority of the trust’s shares and therefore control the outcome of virtually all matters submitted to shareholders.

Grayscale’s disclosure also flags the governance risk that could follow from that arrangement. According to the filing, DCG could prioritize its own interests, including interests tied to other investments and business lines, over those of the trust.

DCG’s broader exposure to Zcash

The amended registration statement notes that DCG is involved with Zcash beyond its relationship with Grayscale. Fortitude Mining, a DCG subsidiary, mines ZEC and operates infrastructure on the network, while Foundry Digital runs a ZEC mining pool.

For the month ended July 2026, Foundry’s pool accounted for about 15.4% of Zcash network hash rate, according to the filing. That means DCG would sit on multiple sides of the ecosystem if its affiliate ultimately takes a large stake in the trust.

Trust size, valuation, and listing details

As of June 30, the Zcash Trust had net asset value of $155.2 million and held about 2.3% of circulating ZEC. Shares closed at $36.6 on Aug. 12, representing a 7% discount to net asset value per share.

Grayscale said the shares have traded at a discount on 700 days since October 2021. Over that period, the maximum discount reached 55%, while the maximum premium was 240%. The filing also states that the SEC has not approved or disapproved the shares.

Operational setup and recent background

Coinbase Custody Trust Company serves as custodian for the trust’s ZEC holdings, while Coinbase acts as prime broker. In Amendment No. 4, the sponsor fee is listed as the trust’s only expected ordinary recurring expense, but its annual rate was left blank. The filing also left the trust’s intended new name blank.

The source article also notes recent Zcash network history, including the Ironwood upgrade and a turnstile mechanism introduced after a counterfeiting bug appeared in the Orchard shielded pool. Separately, ZEC traded at $550.78 on Aug. 19, giving it a market capitalization of $9.3 billion.

What comes next

The immediate next step remains the outcome of the discussions between Grayscale and DCG International Investments Ltd. At this stage, there is no binding agreement, and the potential investor could buy more shares, fewer shares, or none at all.

More broadly, Grayscale is pursuing a familiar conversion path. The manager previously sought to move other products onto NYSE Arca, and the article notes that the SEC cleared its Digital Large Cap Fund for that exchange alongside generic listing standards and the removal of a 19(b) filing requirement. For now, the proposed Zcash Trust move and the possible 200,000 ZEC contribution remain under discussion rather than finalized.

Source: cryptopotato.com