Zcash is emerging as the crypto star of 2025 with over 1,000% surge, massive use of private transactions, and a market cap surpassing Monero for the first time.
2025 has been a challenging year for the markets, but one exception is making a lot of noise: Zcash. While traditional cryptocurrencies have been sluggish, ZEC has skyrocketed with a 1,000% increase since January. This surge is dramatically reshaping the role of privacy coins in the ecosystem, and Grayscale is clearly not willing to miss out on this opportunity. The crypto asset manager has filed an S-3 document with the SEC to convert its Zcash Trust into a fully-backed ETF.
Grayscale is capitalizing on the rise of ZEC to transform its Zcash trust into an ETF, tapping into the growing demand for encrypted payment solutions.
Grayscale capitalizes on ZEC’s rise to transform its Zcash trust into an ETF
Investors are seeking assets that can serve as digital cash. Zcash is gradually gaining prominence in this category, far beyond its initial image as an experimental project. Its meteoric price rise has brought private transactions back into the spotlight at a time when privacy is becoming a technological and political issue.
The interest is strong enough to lead Grayscale to follow the same strategy as it did with its Bitcoin Trust, which paved the way for spot ETFs in 2024. The bet is simple: if the market shifts towards encrypted payment tools, institutional access could follow.
ZEC surpasses majors and reaches a historic milestone
Zcash’s performance is impressive, with over 1,000% surge in 2025, and another 40% in the last month. Even as BTC rebounds and ETH returns to green, ZEC is leading the pack. This momentum is not just about price but also reflects a profound shift in usage.
Shielded transactions, Zcash’s native privacy system, are no longer a gimmick for tech enthusiasts. They now represent about 30% of operations. What’s more, between 20% and 25% of all circulating ZEC is stored in encrypted addresses. This massive movement has propelled Zcash above Monero in market capitalization, a first in the privacy coin sector.
Towards a normalization of privacy coins in the markets?
Grayscale submitting a document this early in the cycle is significant. A Zcash spot ETF would be a first in the US and a symbolic step for privacy-focused cryptos. Until now, these assets have operated in a gray area, embraced by a dedicated community but often kept at arm’s length by institutions.
If the SEC approves the product, it would mark a shift in perception. Privacy coins would finally become eligible for mainstream investment through regulated products. For a market seeking credible alternatives to traditional digital cash, the introduction of a ZEC ETF would set a major precedent, but also an impressive contradiction.
Grayscale bets on the demand for privacy
The message is clear: the firm anticipates a sustained rise in interest for private payment infrastructures. In a context where financial surveillance is increasing and users want to regain control of their data, assets like Zcash become more relevant.
Grayscale is betting that this demand is only the beginning. And with one of the best performances of the year, ZEC has already proven that the market is willing to follow. The question now is whether the fireworks will continue… or fizzle out quickly.
