Winklevoss Brothers File for Spot Zcash ETF, Targeting 0.25% Fee

Winklevoss Brothers File for Spot Zcash ETF, Aiming to Undercut Grayscale

Winklevoss brothers’ entity has officially filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a spot Zcash ETF, under the ticker WINK. The fund boasts an exceptionally low management fee of just 0.25% and is expected to see Winklevoss Capital commit up to $100 million in seed funding, signaling a strong challenge to Grayscale’s current dominance in the sector.

The U.S. spot cryptocurrency ETF market is intensifying, with the spotlight now turning to the established privacy coin, Zcash (ZEC). According to a report by The Block on October 6, 2026, Winklevoss Asset Services, LLC, an entity associated with brothers Tyler and Cameron Winklevoss, has formally submitted a Form S-1 registration statement to the SEC, outlining plans to launch a spot fund named the “Winklevoss Zcash ETF.”

Should it receive SEC approval, the ETF will directly hold the native Zcash token, ZEC, rather than futures or other derivatives. The fund is slated for listing on the Nasdaq exchange, with the ticker symbol WINK.

In terms of operational structure, the fund will employ a “cash creations and redemptions” mechanism. This means authorized participants will invest U.S. dollars, and the fund will then purchase ZEC on the market, without the direct exchange of physical tokens.

Most notably, the fund’s pricing strategy is poised to be disruptive. Multiple concurrently filed documents reveal that WINK’s sponsor fee rate, or management fee, will be a mere 0.25%. Furthermore, Winklevoss Capital has indicated its intention to invest up to $100 million in the fund’s shares, demonstrating strong conviction and substantial financial backing for its product.

In integrating its ecosystem resources, the Winklevoss brothers are leveraging the synergies within their corporate structure. The ETF will utilize Gemini Trust Company, LLC, the twins’ own cryptocurrency exchange, as its custodian. Gemini has been providing custody and trading services for ZEC since 2018.

Additionally, the filing discloses a strategic partnership with Cypherpunk Technologies, a publicly traded company supported by the Winklevosses, which will handle Zcash network-related services. Cypherpunk is not only involved in Zcash mining operations but also holds a significant amount of ZEC.

The emergence of WINK is set to directly challenge Grayscale’s current leading position. Grayscale’s spot Zcash ETF (ticker ZCSH) launched on NYSE Arca on August 25 of this year. As the first spot ZEC ETF in the U.S., it rapidly amassed over $500 million in assets under management within two weeks of its debut, despite a substantial 2.5% management fee, and has recently approached $890 million. If Bitwise, which is also reportedly seeking approval, is included, Winklevoss would become the third issuer vying for a share of the U.S. Zcash ETF market.

However, the path to launching privacy coin ETFs remains fraught with challenges. While the SEC’s conclusion of its review of Zcash-related matters in January 2026 without enforcement action offered a glimmer of hope for such products, filing the S-1 document is merely the first step in the registration process. Potential questions regarding “conflicts of interest” arising from affiliated entities serving as custodians, coupled with the stringent anti-money laundering scrutiny inherent to privacy coins, cast uncertainty over WINK’s ultimate approval.