Most of you already know the Bitcoin Investment Trust. This investment vehicle allows institutions to expose themselves to fluctuations in the price of bitcoin, without having to buy the cryptocurrency directly. An application has recently been filed with the US SEC for the creation of the ZCash Investment Trust. It will be interesting to see if this project will have a real impact or not on the price of ZCash.
ZCash Investment Trust ?
Most cryptocurrencies and digital assets want better exposure to the general public. Investors already know about Bitcoin, Ethereum and maybe even Litecoin. Zcash is one of those little-known cryptocurrencies, but this situation could change very soon.
Indeed, if the Zcash Investment Trust is authorized by the SEC, institutional investors may soon be able to take advantage of the price volatility of Zcash. On paper, this should not pose a lot of problems, because there is already a fund on Bitcoin. What could, however, upset the Security and Exchange Commission is the anonymous side of the ZCash.
$ 12 million from ZCash for launch
Grayscale Investments, the originator of these investment funds, purchased just under $ 12 million worth of ZCash to provide enough liquidity to launch the project. At the time of this purchase, the ZEC was valued at $ 230.44.
An article on Medium explains that this massive purchase was made using the Bitfinex Stock Exchange, which is one of the most popular stock exchanges when it comes to ZEC trader. Since the release of this cryptocurrency, much of the initial hype has fallen and the price has returned to "classic" levels. That said, the ZCash is still relatively rare, with 2.56 million ZECs in circulation at the time of writing.
If this investment fund receives official approval from the SEC, things could move very quickly for the ZCash. Being able to diversify your cryptocurrency portfolio using traditional investment options is something that many people will appreciate. It remains to be seen how this will affect the price of the ZCash.