21Shares has brought Zcash exposure to two European exchanges through an investment account. Listed on September 22, ZCASH is physically backed by ZEC and carries a 2.5% annual fee.
Zcash has gained another route into conventional investment accounts in Europe. The physically backed 21Shares Zcash ETP, trading as ZCASH, listed on Euronext Paris and Amsterdam, according to the issuer’s September 22 announcement. The product gives investors a listed way to gain ZEC exposure without holding the cryptocurrency in their own wallet.
One product, two trading currencies
ZCASH trades in euros in Paris and US dollars in Amsterdam. Its September 22 factsheet lists an annual fee of 2.5% and the ISIN CH1608218801. Both exchange lines refer to the same Zcash product; the choice of trading currency does not create a different cryptocurrency.
The physical backing means that the underlying ZEC is held in custody. The security bought through an investment account is distinct from ZEC that a holder can send to an address and use on the network. The distinction between shares and coins also appears in spot Bitcoin ETFs, although the legal structures of the products need to be considered separately.
An ETP is not automatically a fund. The ZCASH factsheet identifies its legal structure as a debt security. Conditional eligibility for UCITS portfolios does not make the product itself a UCITS investment fund.
Custody changes, but price exposure remains
Zcash’s shielded transactions use zero-knowledge proofs to support privacy for transaction details. Buying ZCASH on an exchange does not extend those network features to activity in a brokerage account. Exposure through a security and privacy on the underlying network are separate matters.
The 2.5% annual product fee is also a cost to weigh against holding the coin directly. A stock-exchange listing does not remove the underlying asset’s volatility. When tracking the ZEC price, the spot-market quote and the price of an ETP trading in another currency should not be treated as identical measures.
