Grayscale's Zcash ETF Bid: The 'GBTC 2.0' Hype Cycle and ZEC's Absurd Price Targets – What Reddit's Bitching About

Grayscale's Zcash ETF: Privacy Savior or Just Another Crypto Pump and Dump?

So, Grayscale's at it again, huh? Filing for a Zcash ETF. Because what the crypto world really needs is another way for institutional investors to gamble with our money, this time on a "privacy coin." Give me a break.

The "Privacy" Mirage

Let's be real, the whole "privacy" thing with Zcash has always felt a bit...overblown. They talk about zero-knowledge proofs and shielded transactions, but how many people actually use those features? It's optional privacy. Big difference. It's like having a "delete" button on the internet – technically there, but functionally useless.

Grayscale themselves are spinning this as "privacy becoming foundational across crypto." Foundational? More like a niche interest for the tinfoil hat crowd. And let's not forget, privacy coins have a history of regulatory scrutiny. Are we really supposed to believe the SEC is suddenly cool with something they've been so wary of in the past? I don't buy it.

Then there's the whole comparison to GBTC. Simon Shockey at Delphi Digital is out there saying this could be "GBTC 2.0," with a discount arbitrage opportunity. Buy the ZCSH trust at a discount, wait for the ETF approval, and cash in. Sounds easy, right?

The GBTC Trap, Revisited

But here's the thing: GBTC blew up a lot of people. 3AC, BlockFi, Genesis... Remember those names? The discount trade only worked because of regulatory clarity. What if the SEC drags its feet on this Zcash ETF? What if they outright reject it? Suddenly, you're holding a bag of ZCSH trading at a massive discount, and nobody wants to touch it.

I mean, Shockey even admits it's "not guaranteed. Not the same trade. But structurally very similar." That's not exactly a ringing endorsement, is it? It's more like "Hey, this might work, but also you could lose all your money. Good luck!"

And this whole "ZEC could unlock new demand" argument? Most funds can't hold ZEC directly "due to custody and mandate issues." Oh, so now they need Grayscale to hold their hand? These are sophisticated investors, supposedly. Can't they figure out how to set up a Zcash wallet? I'm not buying that excuse.

It's all about the fees, isn't it? Grayscale gets a cut, the brokers get a cut, and the average investor gets screwed. Offcourse, that's just my opinion.

The $1,000 Pipe Dream

And don't even get me started on the "ZEC could hit $1,000" hype. Yeah, Zcash crypto had a nice run in 2025, but a 1,000% gain? That's just pure speculation. An ETF might give it a short-term boost, but it's not going to fundamentally change anything. It's still a privacy coin with limited real-world use, facing regulatory uncertainty and competition from other, shinier cryptos.

Bitcoin is consolidating, and Zcash is surging? Okay, sure. One's the established leader, the other's a volatile upstart. That doesn't mean Zcash is the "future of finance." It means it's a gamble.

ChatGPT thinks Zcash has always been ahead of its time? Maybe. Or maybe it's just been irrelevant, and now they're trying to capitalize on a fleeting moment of interest in privacy. I don't know...Maybe I'm just getting old and cranky.

So, What's the Real Play Here?

Look, I'm not saying Zcash is a scam. But I am saying that this ETF is probably more about Grayscale lining their pockets than it is about revolutionizing privacy or giving small investors a fair shake. It's the same old story: hype, greed, and a few lucky winners at the expense of everyone else. Don't get suckered in.