Zcash has climbed toward $1,600 following a series of sharp price increases, coinciding with the introduction of a new investment product in Europe. Investors in the region now have a fresh avenue to gain exposure to the privacy-focused cryptocurrency without taking on the risks or complexity of direct ownership.
21Shares debuts European Zcash ETP
On September 21, Swiss-based exchange-traded product issuer 21Shares launched the Zcash ETP, under the ticker ZCASH, designed for European investors. The ETP is physically backed, meaning that each share represents actual ZEC held in custody on behalf of investors. The product began trading with $100,212 in assets and 5,000 securities outstanding. Investors are subject to a 2.5% annual product fee, which impacts returns relative to holding ZEC directly.
21Shares is recognized as one of the largest providers of crypto ETPs in Europe, aiming to help traditional investors access digital assets through regulated and familiar investment vehicles.
Mini dictionary: Exchange-Traded Product (ETP), a type of security that tracks an underlying asset such as a cryptocurrency, commodity, or index, and trades on stock exchanges similarly to shares.
Price rally predates product launch
ZEC’s latest surge predates the introduction of the European ETP. Data from CoinGecko show Zcash closing near $1,111 on September 15, before surging above $1,300 on September 16 and reaching around $1,471 the day the ETP launched. The price momentum continued, pushing Zcash above $1,600.
Earlier gains were tracked by Coinpaper, which reported the break above $1,000. Additional factors behind the rally included an investment in ZEC by crypto investment firm Paradigm and anticipation for the network’s upcoming NU7 upgrade—a significant software update for the Zcash protocol scheduled to improve performance and security.
Mini dictionary: NU7 upgrade, a future protocol update to Zcash designed to enhance the blockchain’s scalability, privacy, and network rules.
ZEC’s rally began before the ETP’s introduction, with the new product becoming an additional access point rather than the driving force behind recent price action.
New investment options for European investors
The launch of the Zcash ETP offers investors exposure through a typical brokerage setup, eliminating the need to manage digital wallets, private keys, or direct cryptocurrency custody. This approach is especially suited for institutions or individuals restricted to regulated investment vehicles.
In financial terms, holding $10,000 worth of ZEC in the ETP would cost investors about $250 per year in management fees, excluding any changes in ZEC’s value. Direct ZEC ownership does not incur recurring product fees, though it does require investors to assume full responsibility for security and storage.
| Option | Annual Fee | Custody Format | Typical User |
|---|---|---|---|
| 21Shares Zcash ETP | 2.5% | Brokerage account (regulated ETP) | Traditional investors, institutions |
| Direct ZEC | None | Self-custody (wallets, private keys) | Crypto-native users |
While not the least expensive way to participate in Zcash’s price movements, the ETP’s primary benefit is offering streamlined, regulated access to the asset.
For those unable or unwilling to manage direct crypto holdings, ETPs provide access to $ZEC within an established financial framework.
