[Grayscale Submits First Privacy Coin Spot ETF Application, Multicoin Capital Discloses ZEC Holdings] May 12 news: Grayscale has submitted an application for a Zcash spot ETF, aiming to convert its existing Zcash Trust into a spot product, making it the first privacy coin ETF seeking listing in the United States. Meanwhile, Multicoin Capital disclosed that it has been accumulating ZEC since February. Co-founder Tushar Jain linked the investment rationale to proposed U.S. wealth tax legislation, arguing that increased government surveillance of private financial holdings will drive structural demand for assets that mathematically shield against regulation. However, the application also raises institutional custody challenges: approximately 30% of Zcash's supply is located in shielded address pools, marking a historical high, but ETF custody almost certainly requires the use of transparent address pools to meet auditing and balance proof requirements. Previously, the SEC concluded its long-term review of Zcash in January 2026 without taking enforcement action, significantly reducing regulatory uncertainty.