Winklevoss Twins Propose Low-Fee Spot Zcash ETF at Token2049

Cameron and Tyler Winklevoss presented a proposal for a low-fee spot Zcash exchange-traded fund (ETF) during the Token2049 conference held in Singapore. The fund, which would trade on Nasdaq under the ticker WINK, is being issued by Winklevoss Asset Services and aims to charge an annual sponsor fee of just 0.25%. This fee is significantly lower than the 2.5% charged by Grayscale's existing Zcash ETF, ZCSH, which launched on August 25, 2026, and has already attracted over $233 million in inflows.

The preliminary S-1 registration statement for the proposed ETF was filed with the U.S. Securities and Exchange Commission on October 6, 2026. This document marks the beginning of the regulatory process for the fund, which is designed to hold ZEC, the native token of the Zcash network, directly. This structure allows investors to gain exposure to ZEC without the complexities of managing wallets or private keys themselves.

Gemini Trust Company, an affiliate of the Winklevoss twins, is set to provide custody for the fund's ZEC in cold storage. Additionally, Cypherpunk Technologies has been named as the Zcash Ecosystem Partner, tasked with supporting the protocol and facilitating coinholder voting. The Winklevoss Capital Fund has also expressed non-binding interest in purchasing up to $100 million in shares following the ETF's launch, indicating potential investor interest, although this is not a guarantee of demand.

The proposal comes amid a growing focus on privacy in digital assets, a theme highlighted by Tyler Winklevoss during his speech at the conference. The competitive landscape for Zcash ETFs is intensifying, with the Winklevoss fund poised to challenge Grayscale's established product by offering a more attractive fee structure, potentially leading to a fee war in the market. However, the Winklevoss ETF must still navigate the regulatory approval process before it can begin trading.

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Source: KLEA News