Grayscale has filed with the U.S. Securities and Exchange Commission for a new Zcash exchange-traded fund designed to generate income from options tied to Zcash exchange-traded products. The Sept. 25 proposal arrives as the company's existing ZCSH fund approaches $1 billion in assets, and as ZEC trades near $1,580, extending a September advance while investors assessed the new filing.

The proposal is set out in a filing on sec.gov.

The proposed fund, called the ZCSH High Income ETF, would target shareholder distributions every two weeks. Rather than holding the token itself, it would use options referencing products such as Grayscale's existing Zcash fund. That distinction matters for investors comparing potential income with exposure to a rising ZEC price, and the filing describes a strategy whose returns could differ considerably from ZCSH.

How the New Zcash ETF Would Turn Options Into Income

Grayscale's Sept. 25 SEC filing describes the proposed fund as actively managed, with a stated goal combining current income and some potential for capital appreciation. Under normal conditions, the fund would invest mainly in options tied to Zcash exchange-traded products, setting an 80% threshold measured by the options' notional values.

The manager would buy call options and sell put options to create exposure to an underlying product's price, then sell additional call options to collect premiums. Grayscale expects the income-generating calls generally to expire in one month or less. The filing calls this combination a synthetic covered call strategy, and ZCSH, which holds ZEC, appears among the products its options could reference. In a conventional covered call, the fund would own the underlying asset outright; the synthetic version aims for the same exposure without holding it.

Selling calls creates a clear limit. If ZCSH climbs beyond the selected strike price, the income fund may miss part of that gain. The option premium provides cash, but it cannot guarantee a profit or protect the fund against falling prices. Selling puts also leaves the strategy exposed when the underlying fund declines.

The proposed Zcash ETF would distribute income biweekly, subject to what the portfolio earns. Grayscale says the proposed distributions carry no guaranteed amount or yield, and some payments could represent a return of investors' capital if income proves insufficient. The filing leaves the new fund's ticker and fee figures blank, so the offering's final terms remain to be completed.

The fund would neither hold ZEC nor maintain a wallet or private keys. Its options structure also means its share price might move differently from ZEC. Grayscale adds that ZCSH and its listed options have short trading histories, which could affect pricing and liquidity.

Zcash ETF Assets Approach $1 Billion as ZEC Tests $1,592

Grayscale's existing Zcash ETF, ZCSH, held roughly $996 million in total assets as of Sept. 25. It began trading on NYSE Arca on Aug. 25 after Grayscale converted its older Zcash trust, and listed options on ZCSH followed on Sept. 8, creating instruments the proposed income strategy could use. The proposed income strategy would therefore draw on instruments that have existed for less than a month. Grayscale also plans a three-for-one share split on Sept. 30, which would adjust shares outstanding and price per share proportionally without increasing total fund assets.

The company announced the filing on X:

JUST IN: We've filed The ZCSH High Income ETF. Read the 485a: pic.twitter.com/NkFGkXRwcq> — Grayscale (@Grayscale) September 25, 2026

The asset figure does not equal fresh subscriptions since the conversion. The previous trust already held ZEC, while changes in the token's price alter the value of those holdings. Grayscale reported about $155 million in trust assets at June 30, before the subsequent rally and exchange listing. Digital Currency Group, Grayscale's indirect parent, exchanged 85,705 ZEC for roughly $100 million in new ZCSH shares on Sept. 8, adding assets through that creation alongside older holdings and price changes.

ZEC traded around $1,580 at press time, according to market data, up modestly over 24 hours. CoinGecko showed ZEC rising about 9.6% over the previous seven days. The SEC filing does not, however, establish that the proposed fund caused the latest price move.

Near-term levels place $1,592 between the current price and the recent $1,670 area. A move through $1,592 would bring that upper level back into focus, while a slip below $1,534 would weaken the short-term setup.