Grayscale Files for Zcash High Income ETF Featuring Bi-Weekly Payouts

Grayscale filed with the SEC on September 25 for the ZCSH High Income ETF, which aims to provide payouts every two weeks. The fund does not hold Zcash (ZEC) directly; instead, it generates income by selling options tied to Grayscale’s existing Zcash spot fund (ZCSH). The strategy involves selling short-dated call options to collect premiums, though this approach caps potential upside gains while exposing investors to full downside risk. The filing notes potential conflicts of interest, as an affiliate of the adviser earns fees from the underlying ZCSH fund, which could see increased demand from this new product.