- Four groups received $100,000 each, accounting for 40% of the pledge.
- Grayscale plans to reinvest sponsor fees for up to one year.
- Zcash ETF outflows topped $15 million in November before Tuesday’s trading.
Grayscale pledged $1 million to Zcash development and education on November 10 and named the first four grant recipients. The asset manager also launched a national campaign for its existing Zcash ETF, starting with a zebra-striped wrap around The Wall Street Journal. ZEC fell nearly 13% to about $1,025 that day, while fund shares dropped roughly 12% to $27.25.
How Grayscale divided the first $400,000 in Zcash grants
In its grant announcement, Grayscale identified four recipients of $100,000 each. The Zcash Foundation develops open-source software, while Pretty Good Policy for Zcash works with policymakers on financial privacy.
Shielded Labs researches the protocol. Project Tachyon aims to help wallets sync faster and let the network process more shielded transactions.
The campaign’s website, Zcash Invest, explains a choice users face when sending ZEC. They can make a transparent transfer or shield the sender, recipient and amount. The campaign will also run across outdoor displays, streaming services and social media.
What Grayscale plans to do with Zcash ETF sponsor fees
Grayscale intends to put all sponsor fees it receives back into development, marketing and education for up to the fund’s first year as an exchange-traded product. Investors still bear the 2.5% annual fee, which the fund calculates daily and pays in ZEC.
The sponsor can change or end its voluntary commitment, and some proceeds may pay for advertising the fund itself.
The trust began as a private placement in 2017. Its shares started trading over the counter in 2021 and listed on NYSE Arca on August 25, 2026, under the ticker ZCSH. Brokerage customers can use the shares to track ZEC’s price without managing a wallet or making a shielded transfer.
Investors had already been pulling money from the fund before Tuesday’s ads appeared. The net outflows of $46.25 million in October and more than $15 million in November, excluding Tuesday’s figures.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
