Zcash Price Prediction After Grayscale Files First-Ever Spot Privacy Coin ETF

Zcash(ZEC) Price remains in focus after Grayscale filed to convert its Zcash Trust into a spot ETF. The move could create the first spot ETF linked to a privacy coin. ZEC traded above $550 on Tuesday, despite recent market pressure. The price of Bitcoin remained above $80,800 as traders kept an eye on the upcoming vote on the CLARITY Act and geopolitical tensions.

Grayscale Files to Launch the First Spot ETF for a Privacy Coin

Zcash price rose almost 30% in the last week, given the positive crypto sentiment, which resulted in increased demand for privacy coins. The token rallied in a broader market pause, dropping around 3% in the previous trading session. 

ZEC trading continued to remain above key shorter time level support with buyers kept alive near that level.

The filing by Grayscale asks to have the proposed product added to the NYSE Arca under the securities symbol ZCSH. If registration is successful, the trust would be called Grayscale Zcash Trust (ETF). Its value would be based on the number of ZECs held by the trust, net of fees and liabilities.

The filing came after the SEC is said to have ended its investigation into the Zcash Foundation in January. Regulators made no recommendations for enforcement or rule changes. This would have taken away one of the primary worries of privacy oriented cryptocurrencies investors.

Zcash Price Outlook Ahead Of CLARITY Vote

Zcash is now trying to defend the $530 support area after two straight days of losses. A rebound from that zone could preserve its bullish technical setup. 

Market sentiment remains mixed before Thursday’s Digital asset market Clarity Act vote. The bill may provide clearer crypto rules, but could also heighten compliance pressure. If regulations tighten up, privacy coins may be in the spotlight.

Interest from institutional investors has also pushed Zcash back onto the market watch lists. Multicoin Capital co-founder Tushar Jain revealed that the firm has been “accumulating ZEC position since February”. The asset is considered a macro hedge option, he said.

For the short term, ZEC is reliant on support at $530 and market sentiment for cryptos in general. A sustained period of this level would allow for a subsequent recovery attempt.

ZEC Price Eyes Recovery Above $600 Amid Growing Institutional Interest

The ZEC price remained at $551 on Tuesday, after being subjected to some light selling pressure during the recent trading session. After a recent consolidation period, Zcash still managed to stay above the key $530 support level. 

The short-term momentum has been flagging, as indicated by technical indicators, after ZEC had strong gains earlier this month. 

The MACD was continuing its downward trend, indicating weak bullish momentum on lower time frames. The RSI meanwhile settled around 43, indicating less buying pressure that followed overbought levels recently.

If bullish momentum returns, ZEC could retest the immediate resistance near the $600 level. If the price moves beyond the $600 level, the way could go towards the next level up at $650. The privacy coin may move towards the $700 price resistance level if there is further buying pressure.

The downside is that a failure to break above $530 could lead to short-term bearish pressure. If the trade is that, ZEC would look for support around the $500 level in the upcoming trading sessions.