Grayscale ETF application drives Zcash privacy supply to remain at 23%, as market demand for privacy protection continues to rise.

Grayscale Files Zcash ETF Application on NYSE Arca (Ticker: ZCSH), Opening the Door for This Privacy Coin to Enter Traditional Finance. Meanwhile, Zcash’s shielded supply remains around 23%, stabilizing after an 8% increase in early 2025, highlighting ongoing user confidence and support for privacy transaction features.

Why Does Zcash’s Shielded Supply Remain Stable?

Since reaching a peak of 31% in early 2025, Zcash (ZEC)’s shielded supply ratio has fallen back and stabilized at 23%. This stability has important market significance—it indicates that the demand for privacy protection among crypto users is not fleeting but based on real application scenarios with long-term needs.

Token: ZCash (ZEC) - The Big Zero Coin
Circulating Rate: 78.50%

On-chain data analysis shows that users continue to prefer using shielded transactions for sensitive transfers, reflecting that the market has found a mature balance between blockchain transparency and personal privacy. Compared to other privacy-focused projects, Zcash’s selective privacy mechanism gives users more flexible control—transactions can be shielded or made public. This design demonstrates stronger resilience under regulatory pressure.

How Will Grayscale’s ETF Filing Change the Game?

Grayscale’s submission of an ETF application to NYSE Arca means Zcash has its first opportunity to enter the traditional US financial framework. This not only improves investment convenience but also concerns how privacy coins can demonstrate their legitimacy and practical value within regulatory boundaries.

The ETF application process requires strict compliance—covering asset custody, trading transparency, anti-money laundering measures, and more. Grayscale’s move essentially tests whether privacy technology can survive without compromising the regulatory needs of the financial system.

The answer to this question will profoundly impact the future of the entire privacy coin market. If approved, it will set a precedent for other privacy projects; if rejected, it could pose long-term obstacles to privacy coin compliance.

Privacy Demand Drives Market Transformation

The crypto market is transitioning from pure speculation to practical payments. In this shift, the value of privacy protection is increasingly recognized.

On-chain data shows: The stability of Zcash’s shielded transaction ratio reflects the following trends:

• Stablecoin Use Cases: Ongoing demand for transaction privacy in cross-border payments and commercial settlements
• DeFi Risk Mitigation: Large DeFi operations use privacy mixers to avoid front-running risks
• Personal Financial Privacy: Users increasingly value protecting transaction history and balance information

While the inherent transparency of public blockchains ensures system security, it also exposes user privacy. Zcash’s use of zero-knowledge proofs (zk-SNARKs) to enable selective privacy is a solution found within this contradiction.

The Deep Meaning Behind Zcash’s Stable Shielded Supply

From an investor’s perspective, maintaining a 23% shielded supply in Zcash has three key implications:

First, it signifies matured user confidence. Early speculative hype has faded, and current users are genuinely focused on privacy features.

Second, it provides strong support for regulatory negotiations. Stable usage data can demonstrate that Zcash is not designed for illegal activities but serves real financial needs.

Third, it reflects the rising status of privacy protection within the crypto ecosystem. From Ethereum to Solana, more blockchains are integrating privacy modules, and Zcash’s stable data exemplifies this trend.

Zcash’s Outlook in 2026

Combining the Grayscale ETF application and rising privacy demands, Zcash is poised for two major breakthroughs in the coming year:

1. Regulatory Recognition: The ETF application process itself is a step toward aligning privacy coins with compliant finance
2. Application Expansion: The stable shielded supply provides developers with clear signals of user demand, encouraging more innovation at the application layer

Electric Coin Company (Zcash development team) has confirmed that their 2026 roadmap will focus on usability and cross-chain interoperability, further strengthening Zcash’s position in the privacy ecosystem.

Key Takeaways

• Shielded Supply Stable at 23%: Indicates that user demand for privacy features has shifted from speculation to practical application
• Grayscale ETF Filing: Marks the beginning of privacy coins entering mainstream financial markets
• Market Structure Shift: Privacy protection evolves from fringe feature to essential component of the crypto ecosystem
• Investment Opportunity: As the most mature privacy solution, Zcash’s value is being redefined

In an era of increasing on-chain transactions and rising risks of personal privacy leaks, Zcash’s selective privacy model continues to prove its practical value. Regardless of the final outcome of the ETF application, the stable trajectory of Zcash’s shielded supply demonstrates that privacy protection has become an indispensable part of crypto finance.