Zcash, the privacy-oriented cryptocurrency, reached its highest price in roughly eight years over the weekend, briefly trading near $850 to $855. The token advanced more than 22% within 24 hours to levels around $812 to $819, with some reports showing gains as high as 41%. Its market capitalization climbed to approximately $13.7 billion to $13.8 billion, placing it among the top 12 digital assets by value.

The move returned ZEC to prices last seen in early 2018 and extended a weekly advance exceeding 60%. Trading ranges during the surge stretched from lows near $589 to the session highs, underscoring elevated volatility.

Grayscale Advances Conversion of Zcash Trust

The rally coincided with Grayscale filing its fifth amended registration statement with the U.S. Securities and Exchange Commission on August 21. The update fills in remaining details on plans to convert the existing Grayscale Zcash Trust into a spot exchange-traded fund.

If approved, the product would become the first U.S. ETF designed to track ZEC directly. The proposed fund would list on NYSE Arca under the ticker ZCSH and be renamed The Zcash ETF. The annual sponsor fee is set at 2.5% of net asset value, accruing daily.

Coinbase Custody Trust Company is named as custodian. Bank of New York Mellon would serve as administrator and transfer agent. Jane Street and Virtu are designated as authorized participants. Grayscale indicated it may allocate 100% of the sponsor fee received for up to 12 months toward marketing and network-support initiatives, though the commitment is voluntary and subject to change.

A Digital Currency Group subsidiary is also in non-binding discussions about contributing roughly 200,000 ZEC to the trust. The filing itself does not constitute SEC approval, and the timeline for any launch remains uncertain. Grayscale has previously withdrawn other altcoin ETF proposals, including those tied to Cardano, Hedera and Polkadot.

Derivatives Activity Dominates Trading

Futures markets accounted for the bulk of recent volume. ZEC futures turnover reached nearly $9.5 billion to $10 billion over a 24-hour period, far outpacing spot exchange volume of about $1 billion to $2.1 billion. Open interest stood near $1.8 billion, representing roughly 13% of the token’s market capitalization.

Earlier in the week, futures volume had already climbed above $4.5 billion against far lower spot activity. The heavy derivatives participation amplified price swings as traders positioned around the regulatory developments.

Recovery From Earlier Network Challenge

The current advance builds on a recovery from a security incident earlier in the year. In June, developers disclosed a critical vulnerability in the Orchard shielded pool that prompted a sharp sell-off. An emergency fix restored functionality, and a subsequent audit identified no further serious protocol issues. The network then advanced the Ironwood upgrade, aimed partly at strengthening shielded transaction capabilities.

Zcash continues to stand out among privacy-focused assets through its use of zero-knowledge proofs, a capped supply of 21 million coins and proof-of-work consensus. The latest price levels mark a significant reclamation of multi-year territory after a period of relative underperformance for the category.

Market participants are monitoring further SEC developments and key technical thresholds as the next potential catalysts. Approval of a U.S. spot ETF would introduce a creation-and-redemption mechanism intended to improve liquidity and access for traditional investors, though regulatory outcomes remain pending.