The Winklevoss brothers are planning to launch a ETF, allowing investors to directly gain exposure to the privacy-focused cryptocurrency Zcash ( ZEC ).
This Winklevoss Zcash ETF has completed registration through the S-1 form, and the file was submitted to the U.S. Securities and Exchange Commission (SEC) on Tuesday.
According to the declaration documents, this new product is namedWinklevoss Zcash ETFWinklevoss Asset Services and LLC are listed as the initiators of this new ETF.
It is worth noting that the Winklevoss brothers were once the promoters of the first spot Bitcoin ETF application, which was over 13 years ago.
Their initial application for Winklevoss Bitcoin Trust was submitted to SEC on July 1, 2013. At that time, the spot cryptocurrency ETF was still a completely new concept.
How will Winklevoss Zcash ETF operate?
The prospectus summary states that Winklevoss Zcash ETF is intended to be used as a passive investment tool, with the goal of directly holding ZEC and providing exposure to price fluctuations of Zcash.
The fund will not attempt to obtain any returns other than those that are in line with the price movements of the cryptocurrency it tracks.
If approved, the product will be listed on NASDAQ. According to the preliminary prospectus, its stock code could beWINKMandatory requirements:
All of these new ETF holdings of ZEC will be kept by the cryptocurrency custodian Gemini Trust Company. Gemini was co-founded by Cameron Winklevoss and Tyler Winklevoss. This company is an affiliated party of the initiators of this new ETF. Gemini is a limited liability trust company established under the charter of New York State and is regulated by the New York State Department of Financial Services.
The fund will not use leverage or derivatives. This product will only hold ZEC. The new fund may allow investors to obtain exposure to cryptocurrencies simply by opening a regular brokerage account, without the need to purchase and store these assets themselves.
It is worth noting that Winklevoss Capital Fund has indicated an intention to purchase up to 100 million US dollars worth of fund shares. However, the prospectus clearly states that this is not a binding commitment.
Shift to a bullish stance on Zcash
A few days before the submission of this new application, Tyler Winklevoss publicly expressed his excitement about Zcash. This privacy-focused cryptocurrency is once again gaining attention.
According to previous reports by U.Today, this co-founder of Gemini stated last week that the enthusiasm surrounding Zcash reminded him of the cryptocurrency industry in 2019.
