Zcash Price Rises With Developments in Spot ETF Application

The price of Zcash increased by 2.33%, as Grayscale continued with its proposal to file for a spot Zcash ETF with the SEC.
ZEC was trading above its moving averages, however, resistance at $519 and $523 could prevent more gains for now.
Futures open interest on Zcash had mixed positioning as open interest declined on Binance, but was increasing on all exchanges.

Zcash price action was bullish, with ZEC having gained 2.33% to trade at $517.28 over 24 hours in reaction to a new filing by Grayscale involving its proposed spot Zcash ETF.

This comes after Grayscale submitted Amendment No. 4 to its Form S-3 registration statement to the SEC, which is an effort to reclassify the Grayscale Zcash Trust to be a spot ETF.

Table of Contents

Meanwhile, according to technical analysis, ZEC was trading above a number of crucial moving averages, but the derivatives data suggested mixed position among major exchanges. All this taken into consideration makes it evident that Zcash is now at a critical juncture in its ongoing market action.

Zcash Price Above Crucial Technical Levels

Zcash Price hit $517.28 having climbed up by 2.33% in the past 24 hours. Momentum was positive during the intraday session, but decreasing volume suggested that the trend was happening against decreased volume.

According to the 4-hour chart, the ZEC price was above the middle Bollinger Band level at $505.13. The top of the Bollinger Band was at the $524.08 level, forming a nearby resistance level.

Source: Trading View

The Relative Strength Index (RSI) was 63.39, meaning there was an increased buying pressure without reaching the 70 level, which is considered overbought.

In another technical indicator, the ZEC price was at the $516.87 level above its 20-period EMA at $505.16.The 50-period EMA was $500.05, while the 100-period and 200-period EMAs were $497.62 and $494.94, respectively.

The Fibonacci levels identified $519.02 as an immediate resistance level, followed by $523.49 and $529.84. ZEC had also moved above $510, with $522 identified as another resistance point. On the downside, $510 and $505.16 represented important levels in the technical setup, while a deeper pullback could bring $502 into focus.

Zcash Price Reacts to Grayscale ETF Amendment

The latest Zcash price movement came as Grayscale updated its registration statement for its proposed Zcash ETF. The company filed Amendment No. 4 to its Form S-3 registration statement with the SEC.

The proposed product would convert the Grayscale Zcash Trust into a spot ETF designed to provide exposure to ZEC. The proposed ETF is intended to trade on NYSE Arca under the ticker ZCSH.

The filing represents another update to the proposed fund’s registration documents. Grayscale has not disclosed a management fee or a fee waiver for the proposed ETF.

The latest amendment also contains changes concerning how shares would be created and redeemed.

The Zcash ETF would conduct creations and redemptions primarily through cash orders. The filing continues to allow in-kind creations but changes the language to state that the trust does not permit in-kind redemptions.

DCG Discusses Potential 200,000 ZEC Contribution

The updated filing also disclosed discussions between the ETF sponsor and DCG International Investments Ltd., a wholly owned indirect subsidiary of Grayscale parent company Digital Currency Group.

Under a potential contribution arrangement, DCG International Investments could acquire shares through an authorized participant in exchange for 200,000 ZEC tokens. The filing states that the discussions are non-binding.

The proposed arrangement is separate from the ETF’s structure for creations and redemptions and remains subject to the terms outlined in the filing.

ZEC Futures Open Interest Shows Mixed Positioning

Derivatives activity presented a mixed picture as ZEC’s price moved higher. According to the supplied CoinGlass data, total ZEC futures open interest increased 1% to $928.22 billion over 24 hours.

Open interest on Binance declined 3.90%, a move associated in the supplied data with profit booking. In contrast, ZEC futures open interest increased by almost 9% on Hyperliquid, 3.40% on OKX, and 2.18% on KuCoin.

The varied moves on the different exchanges reveal that the positioning of the futures contracts was not uniform during the period. Binance experienced a fall, while all other exchanges experienced gains.