Zcash soars to eight-year high amid crypto rally, and hopes of an ETF approval

Zcash is emerging as one of the stars of the sudden broad-based rally in crypto assets that went into high gear last week.

The privacy-focused cryptocurrency has surged 66% over the past week, hitting an eight-year high of $841 on Monday.

Its surge came after investment manager Grayscale filed an amendment with the Securities and Exchange Commission on Friday to convert its existing Zcash Trust into an exchange-traded fund.

If approved, the fund would trade on the New York Stock Exchange under the ticker ZCSH.

Zcash’s strong performance comes amid a broader rally across the crypto market.

Cryptocurrencies have risen sharply since Wednesday, posting gains not seen in nearly a year.

The Treasury Department’s bond-buyback announcement helped spark the move, while renewed political support for the industry and a wave of short-position liquidations pushed prices even higher.

Bitcoin, the largest cryptocurrency by market value, continued to climb and was trading just below $80,000 on Monday.

For Zcash, Grayscale’s proposed ETF came as an additional catalyst.

If approved, the fund would give investors a regulated way to gain exposure to ZEC, Zcash’s native token, through their brokerage accounts, without having to buy or hold the token directly.

Its outperformance has revived discussion of whether Zcash can emerge as a more prominent alternative to Bitcoin for investors seeking financial privacy.

Unlike Bitcoin, Zcash allows users to shield transaction details, such as the sender, recipient, and transaction amount, using zero-knowledge cryptography.

Zcash supporters say that it improves on Bitcoin by offering Bitcoin’s fixed supply without the public ledger.

As artificial intelligence grows, proponents argue that so will the risk of government surveillance.