Grayscale’s Zcash ETF, known as ZCSH, saw its assets under management drop from $1 billion on September 24 to $781.96 million by October 5. This decline includes $97 million in withdrawals and a reduction in cumulative net inflows from $306.12 million to $209 million. Investors withdrew funds in four out of the last five sessions, with daily outflows reaching between $27 million and $30 million from September 30 to October 2.
On October 6, Winklevoss Asset Services submitted a filing for a competing Zcash ETF. The proposed fund, which will trade under the ticker WINK on Nasdaq, features an annual fee of 0.25%. This is one-tenth of the fee charged by the Grayscale fund. For an investment of $10,000, the Winklevoss product would cost $25 annually, compared to $250 for the existing Grayscale ETF.
Gemini Trust, founded by Cameron and Tyler Winklevoss, is designated as the custodian for the proposed fund. The filing identifies Gemini as an affiliate of the sponsor, noting a potential conflict of interest. Additionally, Winklevoss Capital Fund has expressed a non-binding interest in purchasing up to $100 million in shares of the new ETF.
The sponsor, Winklevoss Asset Services, was established on October 1 and currently lacks experience in managing pooled investment funds. The registration filing remains incomplete, with sections for the price benchmark, seed amount, and trading partners left blank. Trading of WINK cannot commence until the SEC approves the registration and Nasdaq clears the listing.
