What did Bitwise file for ZEC?

Bitwise has filed with the U.S. Securities and Exchange Commission (SEC) to launch a Zcash (ZEC) “Strategy ETF.” This fund would provide a regulated way for investors to gain exposure to ZEC, pending approval (CoinDesk).

1. The fund can invest up to 60% directly in ZEC, with the remaining portion invested in exchange-traded products (ETPs) and derivatives (CoinDesk).
2. Bitwise aims to list the ETF on the NYSE Arca exchange, with the filing submitted on December 30, 2025 (Yahoo Finance).
3. While approval is not guaranteed, this move highlights growing institutional interest in privacy-focused cryptocurrencies (Daily Hodl).

Deep Dive

1. Filing Details

Bitwise submitted a group of 11 proposed ETFs focused on various altcoins, including Zcash (ZEC), AAVE, UNI, and others. The ZEC Strategy ETF is designed to offer investors access through traditional brokerage accounts, rather than requiring them to hold the cryptocurrency directly or manage private keys (CoinDesk, Daily Hodl).

What this means: If approved, investors could gain exposure to ZEC in a familiar ETF format without needing to understand or manage the technical aspects of cryptocurrency wallets.

2. Structure and Mechanics

Each Strategy ETF can hold up to 60% of its assets directly in the underlying cryptocurrency (like ZEC). The remaining 40% or more would be invested in related financial products such as exchange-traded products and derivatives (like futures or swaps). This hybrid approach helps the fund comply with existing regulations and manage risks. Bitwise plans to list these ETFs on NYSE Arca, following the December 30, 2025 filing (CoinDesk, Yahoo Finance).

What this means: This mixed investment strategy is designed to fit within current ETF rules and may make it easier for regulators to approve the fund compared to ETFs that hold only the cryptocurrency directly.

3. Why It Matters

Privacy coins like Zcash have faced challenges getting listed on regulated exchanges due to regulatory concerns. Bitwise’s filing is significant because it shows growing institutional interest in privacy-focused cryptocurrencies. Other companies, like Grayscale, are also working on similar products, such as converting their Zcash trust into an ETF (CoinGape).

What this means: If regulators approve these ETFs, it could increase liquidity (ease of buying and selling) and research coverage for ZEC. Even if approval is delayed or denied, the filing signals strong demand and how companies plan to meet investor interest in privacy coins.

Conclusion

Bitwise’s filing for a Zcash Strategy ETF combines direct investment in ZEC with related financial products, aiming for a listing on NYSE Arca. While approval is not guaranteed, this move highlights growing institutional efforts to offer regulated access to privacy coins. If approved, it could make it easier for more investors to participate and improve liquidity in the ZEC market.

What could affect the price of ZEC?

Zcash’s price is balancing between growing privacy use and regulatory challenges.

1. Privacy technology improvements – The Sapling upgrade and Layer-2 Ztarknet increase how useful Zcash is.
2. Institutional interest – Grayscale’s ZEC ETF and corporate treasury purchases bring more investment.
3. Regulatory changes – Clearer U.S. rules support Zcash, but tougher EU regulations pose risks.

Deep Dive

1. Privacy Technology & Adoption (Positive for Price)

Overview: In October 2025, the Orchard upgrade lowered fees for private transactions by 30%. Also, Ztarknet’s Layer-2 rollup now allows private smart contracts. Currently, over 4.9 million ZEC (about 30% of all coins) are held in shielded wallets, according to CoinCarp.

What this means: These improvements make Zcash more attractive for decentralized finance (DeFi) developers and users who value privacy, which can increase demand. Historically, when more ZEC was held privately, the price rose by over 220% in late 2025 (Yahoo Finance).

2. Institutional Demand (Mixed Effects)

Overview: Grayscale’s ZEC ETF manages $137 million, and Cypherpunk Technologies invested $18 million in ZEC in November 2025. However, the derivatives market shows heavy leverage: on Bybit, there are $21.5 million in long positions versus $3.4 million in shorts for the ZEC/USDT pair (CoinGlass).

What this means: While ETF investments add stability, the large leveraged bets could cause sharp price swings. For example, a 15% price drop to $430 might force $18 million in long position liquidations, increasing volatility.

3. Regulatory Challenges (Potential Downside)

Overview: The U.S. CLARITY Act supports Zcash’s optional privacy features, but the European Union’s proposed MiCA rules could lead to ZEC being removed from exchanges. Enforcement of the FATF “travel rule” also adds uncertainty.

What this means: Tougher European regulations could wipe out the strong gains seen in 2025. For instance, when OKX delisted ZEC in 2024, the price fell 37% within two weeks.

Conclusion

Zcash’s future depends on whether privacy adoption can outpace regulatory hurdles. Technology upgrades and growing institutional interest suggest a price range of $600 to $800 in 2026. However, changes in EU policy or forced selling from leveraged traders could push the price back down to around $350. The big question: Will the Zcon2 conference in early 2026 introduce quantum-resistant proofs that strengthen Zcash’s appeal to institutions?

What are people saying about ZEC?

Zcash (ZEC) conversations are swinging between excitement about its privacy features and critical price points that could determine its next move. Here’s the latest:

1. Most prediction markets are bearish – 85.8% expect ZEC to stay below $550
2. Analysts focus on $550 resistance level – Breaking above could spark a price rally
3. Privacy use is growing fast – The amount of shielded ZEC increased by 55% in one month

In-Depth Look

1. @MusicByVirtuals: Prediction Markets Signal Caution

“Current Price Prediction: Above $550: 14.2% / Below $550: 85.8%”
– @MusicByVirtuals (6,188 followers · 17.5K impressions · 2025-11-28 14:56 UTC)
View original post
What this means: Most traders expect ZEC to stay under $550 in the short term, even though it’s currently around $505. This shows a cautious or bearish outlook, with limited expected price gains soon.

2. @CaptainAltcoin_: January Breakout Possibility

“Here’s Where #Zcash Could Go Next in January 2026”
– @CaptainAltcoin (1,081 followers · 12.3K impressions · 2026-01-02 08:57 UTC)
[View original post](https://x.com/CaptainAltcoin/status/2007013437340066096)
What this means: If ZEC holds support between $470 and $480, analysts see a chance for it to retest its all-time high of $751. A recent 17% price jump to $527 suggests less panic selling and more buying interest.

3. @cryptodotnews: Privacy Adoption Accelerates

“Zcash price surges as shielded $ZEC supply… analysts remain optimistic”
– @cryptodotnews (111K followers · 256K impressions · 2025-12-20 07:01 UTC)
View original post
What this means: The amount of shielded ZEC—coins used in private transactions—grew 55% in November 2025 to 4.76 million coins, making up 29% of all ZEC. This reduces the number of coins available for trading and shows growing privacy use. Also, 886 merchants now accept ZEC, more than popular blockchains like Solana and Cardano.

Conclusion

Opinions on Zcash are mixed. The growing use of privacy features and big institutional buys (like Cypherpunk’s $58 million purchase) support its long-term value. However, most traders expect it to struggle breaking above the $550 resistance level. Keep an eye on the price action between $500 and $550 this week, along with the monthly growth in shielded supply (now +55%) to see which way the trend goes.

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What is the latest news about ZEC?

Zcash is navigating big investor moves, hopes for new ETFs, and the growing importance of privacy in crypto’s future. Here are the latest updates:

1. Whale Deposits $35.75M to Binance (January 3, 2026) – A large transfer of ZEC raises questions about liquidity but doesn’t immediately affect the price.
2. Bitwise Files for 11 Altcoin ETFs (January 2, 2026) – Zcash is part of new ETF proposals, showing growing interest from institutional investors despite regulatory challenges.
3. ZEC Outperforms in 2025, Dips After Rally (January 2, 2026) – The privacy coin surged 820% last year but saw a small pullback amid broader market ups and downs.

Deep Dive

1. Whale Deposits $35.75M to Binance (January 3, 2026)

Overview: A large investor, often called a “whale,” moved 74,002 ZEC (worth $35.75 million) to the Binance exchange, according to Lookonchain data. Despite the size of this transfer, the price of ZEC stayed steady around $505. Experts say that moving coins to an exchange doesn’t always mean they will be sold right away—it could be for trading derivatives or safekeeping.

What this means: This is a neutral sign for ZEC. The transfer shows how liquidity is moving but hasn’t shaken the market. Traders are watching closely to see if this leads to bigger moves or is just portfolio management. (CoinMarketCap)

2. Bitwise Files for 11 Altcoin ETFs (January 2, 2026)

Overview: Bitwise, a major crypto investment firm, filed to create ETFs that would include ZEC, AAVE, and nine other altcoins. If approved, these ETFs would be traded on the NYSE Arca exchange, making it easier for big investors to get involved. Bitwise expects over 100 crypto ETFs to launch in 2026 as regulations evolve.

What this means: This is cautiously positive for ZEC. Approval of ETFs could increase demand, but privacy coins like Zcash face extra scrutiny from the SEC. Some believe ZEC’s optional privacy features might make it more acceptable to regulators compared to coins with default privacy like Monero. (Daily Hodl)

3. ZEC Outperforms in 2025, Dips After Rally (January 2, 2026)

Overview: ZEC had a strong year in 2025, rising 820%, fueled by growing interest in privacy and new connections with blockchains like Solana and NEAR. However, on January 2, 2026, it dropped 6.6% as some investors took profits. This dip was sharper than some meme coins like PEPE, which rose 30%. Analysts say this is due to overheated trading in derivatives and investors shifting to riskier assets.

What this means: The signals are mixed. Long-term growth in privacy use remains strong, with shielded transactions up 55% in late 2025. But short-term price swings show how crypto markets can be volatile and speculative. (The Defiant)

Conclusion

Zcash is balancing growing interest from big investors—like ETF filings and a $2.1 billion Grayscale Trust—with short-term price ups and downs. While regulatory challenges remain, Zcash’s privacy technology and increasing use of shielded transactions (now 29% of its supply) give it a unique position. The big question for 2026: Will ZEC move from a niche privacy coin to a widely accepted, regulation-friendly asset for institutions?

What is expected in the development of ZEC?

Zcash is focusing on improving privacy, ease of use, and decentralization with these key updates:

1. Zashi Wallet Upgrades (Q4 2025) – Better user experience for private transactions and the ability to swap coins across different blockchains using NEAR Intents.
2. Ephemeral Address Rollout (Q4 2025) – Automatically creating one-time-use addresses to make transactions harder to trace.
3. Keystone Hardware Wallet Integration (Q4 2025) – Adding secure multi-signature support to protect developer funds.
4. Scalability Research (2026) – Exploring Layer-2 solutions like Ztarknet to enable private, programmable smart contracts.

Deep Dive

1. Zashi Wallet Upgrades (Q4 2025)

Overview: The Zashi wallet will now make private (shielded) transactions the default. It also supports decentralized swaps using NEAR Protocol’s cross-chain Intents, letting users privately exchange assets like BTC or ETH for shielded Zcash (ZEC).
What this means: This is good news for wider adoption because it makes privacy easier to use for everyday users. However, depending on external systems like NEAR could bring some risks around compatibility and security.

2. Ephemeral Address Rollout (Q4 2025)

Overview: Every transaction will use a unique transparent address that is automatically generated. This reduces the chance of address reuse, which helps improve privacy for exchanges and merchants.
What this means: This change probably won’t affect Zcash’s price in the short term but addresses a common criticism about Zcash’s transparent transactions. Its success depends on whether exchanges and other services adopt it.

3. Keystone Hardware Wallet Integration (Q4 2025)

Overview: Support for Pay-to-Script-Hash (P2SH) multisignature wallets on Keystone hardware wallets will help secure the $18 million developer fund and promote decentralized decision-making.
What this means: This is positive for building trust with institutions, but the added complexity of multisig wallets might slow down decisions if the community doesn’t reach agreement quickly.

4. Scalability Research (2026)

Overview: Ztarknet, inspired by Starknet, is a Layer-2 solution currently in testing. It will allow private smart contracts using Zcash’s shielded pools with Circle-STARK proofs.
What this means: This is promising for the future, as private programmable contracts could attract decentralized finance (DeFi) projects. However, other Layer-2 solutions like Aztec could compete and reduce Zcash’s early advantage.

Conclusion

Zcash’s roadmap carefully balances immediate improvements in usability (like the Zashi wallet and ephemeral addresses) with longer-term goals around scalability and governance. While features like shielded DeFi could spark renewed interest, privacy coins continue to face regulatory challenges worldwide. It remains to be seen if Zcash’s opt-in privacy model can withstand increasing global anti-money laundering (AML) regulations.

What updates are there in the ZEC code base?

Zcash’s software received major updates in late 2025, focusing on improving its infrastructure, meeting regulatory standards, and making it easier to use.

1. Zebra Node Upgrade (Dec 19, 2025) – Added better support for Apple Silicon and new filters to block spam transactions.
2. NU6.1 Activation Prep (Aug 1, 2025) – Fixed bugs and prepared the network for an important upgrade.
3. Zcashd Deprecation (Apr 17, 2025) – Started phasing out the old software in favor of newer Zebra and Zallet wallets.

Deep Dive

1. Zebra Node Upgrade (Dec 19, 2025)

Overview:
Zebra version 3.1.0 now supports Docker on ARM-based devices like Apple’s M1 and M2 chips. It also added a filter to block tiny “dust” transactions that can clog the network.

Technical Details:
The update switched the Docker setup from Debian Bookworm to Trixie, fixing compatibility issues with ARM processors. It introduced a setting to limit the size of RPC (remote procedure call) responses and added a “dust” filter that rejects transactions with outputs smaller than 1,000 zatoshis (0.00001 ZEC). This helps reduce spam transactions that could slow down the network.

What this means:
This is good news for Zcash because it makes nodes more reliable, encourages more developers to participate, and protects the network from spam attacks that could delay transactions. (Source)

2. NU6.1 Activation Prep (Aug 1, 2025)

Overview:
Zcashd version 6.3.0 finalized the code needed for Network Upgrade 6.1 (NU6.1) and fixed important wallet balance calculation errors.

Technical Details:
This release fixed a bug where unshielding Orchard notes (a privacy feature) wasn’t properly reflected in transparent wallet balances shown by APIs like getbalance. It also set the default transaction format to version 5, compatible with the previous NU5 upgrade, and started testing NU6.1 on the test network at block 3,536,500.

What this means:
This update is neutral for Zcash’s price—it smooths the upgrade process but requires node operators to watch carefully for any consensus changes before the upgrade goes live on the main network. (Source)

3. Zcashd Deprecation (Apr 17, 2025)

Overview:
The original Zcashd node software began being phased out, with a full switch planned to Zebra nodes and Zallet wallets by the end of 2025.

Technical Details:
Version 6.2.0 removed support for some older RPC commands like createrawtransaction and disabled legacy features. Users now need to add the line i-am-aware-zcashd-will-be-replaced-by-zebrad-and-zallet-in-2025=1 to their configuration files to confirm they understand the transition.

What this means:
This is a short-term challenge for developers who rely on the old APIs, but a positive step long-term. Zebra’s code, written in Rust, offers faster syncing and more modern tools for developers. (Source)

Conclusion

Zcash’s upgrades in late 2025 focus on making the network more scalable, compliant with regulations, and easier for developers to work with. With Zebra strengthening the infrastructure and NU6.1 improving privacy features, Zcash (ZEC) is positioning itself as a privacy-focused cryptocurrency ready for institutional use. The key question remains: will Zebra’s improved performance outweigh the challenges node operators face during this transition?

Why did the price of ZEC go up?

Zcash (ZEC) increased by 4.53% in the last 24 hours, outperforming the overall crypto market, which rose by just 0.62%. This extends Zcash’s strong 30-day gain of 39%. The main reasons behind this growth are:

1. Bitwise’s ETF application for ZEC has raised hopes for more institutional investment
2. A technical breakout above a key resistance level at $501 (based on Fibonacci analysis)
3. Large investors accumulating ZEC, driven by positive views on privacy-focused coins

In-Depth Analysis

1. Institutional Interest: ETF Developments (Positive Outlook)

Background:
On January 2, Bitwise Asset Management filed for 11 new cryptocurrency ETFs, including one for Zcash. ETFs (Exchange-Traded Funds) provide a regulated way for investors to gain exposure to cryptocurrencies without directly holding them. This follows Grayscale’s recent conversion of its Zcash Trust into a $137 million ETF in late 2025.

Why this matters:

• ETFs make it easier and safer for institutions to invest, as they avoid the complexities of managing crypto wallets and private keys
• Zcash’s privacy features are “opt-in,” meaning users can choose when to use privacy, which aligns better with regulatory compliance compared to coins like Monero that have default privacy (source: CoinDesk)
• Historically, ZEC’s price jumped 170% in Q4 2025 after Grayscale’s ETF approval, showing strong institutional demand

What to watch:
The U.S. Securities and Exchange Commission (SEC) usually takes 45 to 90 days to decide on ETF applications. Investors will be closely monitoring this timeline.

2. Technical Breakout Signals Bullish Momentum

Background:
ZEC’s price recently moved above the 23.6% Fibonacci retracement level at $501.21 and surpassed its 50-day Simple Moving Average (SMA) at $474. These are technical indicators that suggest the price may continue to rise.

Key indicators:

• MACD (Moving Average Convergence Divergence): Shows a bullish crossover (22.7 vs. 15.21), indicating upward momentum
• RSI (Relative Strength Index) 14-day: At 53.63, this suggests the coin is neither overbought nor oversold
• The next resistance level is around $554.18, which was a recent high point

What this means:
Traders are optimistic about ZEC’s price after it recovered from a 37% drop following a peak near $700 in November.

3. Privacy Coin Trends: Mixed Signals

Background:
ZEC’s recent gains come as privacy coins are gaining attention again, especially after venture capital firm a16z highlighted privacy as a key advantage in crypto.

Positive factors:

• The number of shielded (private) ZEC transactions hit record levels, now making up 30% of the total supply, compared to just 10% in 2024
• Regulatory developments like the U.S. CLARITY Act differentiate Zcash from other privacy coins considered “high-risk,” which could be favorable for adoption

Potential challenges:

• The European Union’s MiCA regulations, effective in 2027, may create hurdles for privacy coins on exchanges
• ZEC remains volatile, with a 24-hour trading range between $489 and $523, a 7% swing

Summary

Zcash’s recent price increase is driven by growing institutional interest through ETF filings, positive technical signals, and its unique privacy features that may offer regulatory advantages. While some short-term profit-taking near $550 is expected, the outlook for 2026 remains positive if ETF approvals move forward.

Key points to monitor: SEC’s response to Bitwise’s ETF application and whether ZEC can maintain support above $480.

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