Grayscale files ZCSH High-Income ETF, targets biweekly payouts – Heres how it works!
Grayscale Funds Trust has filed a new proposal with the United States Securities and Exchange Commission (SEC) on the 25th of September for a new product called the ZCSH High-Income ETF. Interestingly, this new ETF is not the same product as Grayscales existing Zcash ETF (ZCSH). In fact, the new fund is designed to generate income from options linked to ZCSH, rather than simply holding Zcash [ZEC]. But someone investing in this ETF should not expect it to capture the full upside of ZEC or ZCSH during a strong rally. All About ZCSH High-Income ETF The proposed ZCSH High-Income ETF will use options linked to Grayscales Zcash ETF (ZCSH), selling call options to generate premium income and making biweekly distributions. Discover more Financing News Secure crypto storage However, this strategy can limit its upside if ZCSH rises sharply beyond the options strike prices, meaning investors may trade some potential gains for regular income. The fund will not directly hold ZEC. Instead, it will gain exposure through derivatives and may hold short-term U.S. Treasuries and money-market funds as collateral. However, as of now, the SEC has not approved or disapproved the securities, and the prospectus is still subject to change. ZEC price action and open interest tell a different story Yet, this was not
