The Winklevoss twins are planning to introduce an ETF that will directly allow investors to gain exposure to the privacy-focused cryptocurrency Zcash (ZEC).
The Winklevoss Zcash ETF has been registered via Form S-1, which was submitted to the U.S. Securities and Exchange Commission on Tuesday.
Per the filing, the new product is called the Winklevoss Zcash ETF. Winklevoss Asset Services, LLC is listed as the sponsor of the new ETF.
The Winklevoss brothers were notably behind the first spot Bitcoin ETF filing, which happened over 13 years ago.
Their initial filing for a Winklevoss Bitcoin Trust was submitted to the SEC on July 1, 2013. At that time, spot cryptocurrency ETFs were a completely new concept.
How the Winklevoss Zcash ETF will work
The summary of the prospectus explains that the Winklevoss Zcash ETF is intended to be a passive investment instrument with the goal of owning ZEC directly and offering exposure to Zcash's price movements.
The fund will not attempt to produce any returns other than those that follow from the cryptocurrency's price movements.
If approved, the product will be listed on Nasdaq. As per the preliminary prospectus, the shares will probably be traded under the WINK ticker.
All the ZEC owned by the new ETF will be stored by Gemini Trust Company, a cryptocurrency custodian. Gemini was co-founded by the Winklevoss twins, Cameron and Tyler. It is an affiliate of the sponsor of the new ETF. Gemini is a New York State chartered limited liability trust company. It is regulated by the New York State Department of Financial Services.
The fund will not use leverage or derivatives. The product will merely own ZEC. The new fund may allow investors to gain exposure to cryptocurrency by simply opening regular brokerage accounts, without the need to buy and store the asset themselves.
Notably, Winklevoss Capital Fund has expressed interest in purchasing up to $100 million worth of shares. However, the prospectus makes it clear that this is not a binding commitment.
Turning bullish on Zcash
The new filing was made just days after Tyler Winklevoss publicly expressed excitement about Zcash. The privacy-focused cryptocurrency is experiencing a resurgence of interest.
As reported by U.Today, the Gemini co-founder said last week that the excitement around Zcash reminded him of 2019 in the cryptocurrency industry.