Zcash ETF Speculation Fuels 3-Month Rally, Reviving Privacy Tech Momentum
Introduction: Zcash’s Resurgence Puts Privacy Back in the Spotlight
In a stunning reversal of fortune, Zcash (ZEC) has delivered one of the most powerful rallies of the year, shocking a cryptocurrency market that had largely written it off. Over a three-month period, the privacy-focused cryptocurrency surged, putting privacy technology back at the forefront of the crypto conversation. This remarkable price performance, which saw a 10x increase, was accompanied by a significant spike in on-chain activity and renewed institutional interest. The rally has not only revitalized Zcash but has also cast a spotlight on the broader privacy coin sector, including projects like Monero and Dash, as well as privacy protocols like Railgun. The convergence of ETF speculation, strategic corporate accumulation, and improved trading infrastructure suggests this may be more than a fleeting pump, potentially marking a new chapter for privacy-preserving digital assets.
ZEC Skyrockets 10x: A Meteoric Rise from the Ashes
ZEC began October at a price of roughly $73 and rallied to $736 by November 7, a return of over 10x in just over two months. This surge propelled ZEC up the crypto market cap rankings, where it currently sits in 15th place. Following the $736 peak, the Zcash price made two subsequent attempts to set new highs. The first attempt nearly matched the $736 peak, while the second faltered at roughly $712, setting the stage for a deeper correction to the $500 level, which has since become a focal point for the ZEC market.
This dramatic price increase was not an isolated event on exchanges. It spurred a substantial uptick in on-chain activity. Analysts at OurNetwork reported that Zcash recently posted its most active week of 2025, boasting a 197% week-over-week jump in transfer transactions. This data indicates that the rally was supported by genuine network usage and not merely speculative trading.
Key Catalysts Fueling the Zcash Rally and Future Prospects
The Zcash rally appears to be underpinned by several fundamental developments that suggest the momentum could extend beyond short-term gains. The algorithmic Zcash price prediction on CoinCodex supports this scenario, forecasting that Zcash will reach the $1,000 price level in Q2 of 2026. Several key factors provide a foundation for this optimistic outlook.
Grayscale Files to Convert Its ZCSH Trust into an ETF
A primary driver behind the bullish sentiment is a significant move by a major crypto asset manager. Grayscale has filed an S-3 registration statement with the U.S. Securities and Exchange Commission (SEC) aiming to convert its Grayscale Zcash Trust product into a spot ETF. The Grayscale Zcash Trust, which has traded on the OTC market since 2017, would represent a new frontier if approved.
In its filing, Grayscale explicitly highlighted the technological differentiation of Zcash, stating: “The fundamental difference between Bitcoin and Zcash is that Zcash offers selective privacy-preserving features. Zcash accomplishes this privacy preservation by using novel cryptographic protocols called Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (“zk-SNARKs”) to protect both the amount and the sender and recipient of the transaction.”
This filing arrives amid a wave of altcoin ETF approvals, with ETFs for XRP, SOL, HBAR, and DOGE now available in the U.S. market. However, Zcash’s core focus on privacy presents a unique regulatory challenge. Currently, there is not a single ETF on the U.S. market that focuses exclusively on a privacy coin, which could make regulatory approval a more complex and uncertain process compared to other digital assets.
Cypherpunk Technologies (CYPH) Plans to Acquire 5% of the ZEC Supply
Adding another layer of persistent demand is Cypherpunk Technologies (CYPH), a Zcash-focused digital asset treasury company backed by the Winklevoss Twins. Cypherpunk has announced a strategic plan to acquire 5% of the total ZEC supply. The company currently holds 233,644 ZEC, representing approximately 1.4% of the supply.
To reach its 5% target, Cypherpunk would need to accumulate significantly more ZEC, creating a potential source of sustained buying pressure in the market. The firm has so far spent roughly $68 million to grow its Zcash treasury, resulting in an average cost basis of around $291 per ZEC. This public accumulation strategy by a dedicated corporate entity provides a tangible and measurable source of long-term demand that did not exist prior to this rally.
Improved Trading Access and Strengthened Privacy Metrics
The infrastructure supporting Zcash investment and usage has seen notable improvements, making it easier than ever for users to engage with the network. The Zashi wallet is now integrated with NEAR Intents, allowing users to easily swap crypto assets from various blockchains for ZEC. Furthermore, the wallet simplifies access to Zcash’s privacy features by streamlining the shielding experience.
This user-friendly approach appears to be having an effect on network health. The shielded ZEC supply—coins protected by zk-SNARKs—has reached nearly 5 million, a significant increase from under 2 million at the beginning of 2025. As more ZEC becomes shielded, the anonymity set grows, which strengthens the overall privacy guarantees of the network for all users.
On the trading front, leading decentralized trading platform Hyperliquid has listed ZEC perpetual futures. This listing enables users on the widely used DEX to take leveraged positions on ZEC, pointing to strong community interest in gaining exposure to an asset that was previously overlooked. Additionally, Zcash can be easily traded on the high-performance Solana blockchain through solutions like Zenrock’s wrapped Zcash token (zenZEC), further expanding its accessibility and utility across different ecosystems.
Conclusion: A Resurgent Foundation for Privacy Technology
Zcash’s impressive 10x rally has done more than generate returns; it has thrust privacy technology back into the crypto mainstream and demonstrated tangible network growth through surging on-chain activity. The current landscape for Zcash is supported by multiple, concurrent catalysts that suggest this revival has a solid foundation.
With Grayscale seeking regulatory approval for a spot ETF, Cypherpunk Technologies systematically acquiring toward a 5% supply target, and trading access constantly improving through tools like the Zashi wallet and Hyperliquid futures, the essential elements for sustained momentum are in place. The ever-growing list of integrations and the strengthening anonymity set further bolster the network's core value proposition.
For market observers and participants, key developments to watch include the SEC's response to Grayscale’s ETF application and Cypherpunk’s continued progress toward its accumulation goal. While regulatory hurdles for privacy-focused assets remain significant, the confluence of these factors indicates that Zcash's recent performance is more than a speculative blip. It is a robust revival driven by both market dynamics and fundamental advancements. If this momentum continues and regulatory pathways can be navigated successfully, the forecast of $1,000 ZEC may indeed prove to be a conservative target in this new era for privacy technology.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research and consult with a qualified professional before making any investment decisions.