Grayscale has submitted a privacy-based ETF application to the U.S. Securities and Exchange Commission (SEC), which will track companies related to data security and protection, internet security products and services (including blockchain-based technical solutions), and hold the Grayscale Zcash Trust.
According to Nate Geraci, President of ETFStore, Grayscale has submitted an ETF application to the SEC based on “privacy”. The ETF will track companies involved in data security and protection, internet security products and services (including blockchain-based technical solutions), and also hold the Grayscale Zcash Trust.
Nate Geraci commented:
Privacy coins (XMR, ZEC, DASH, etc.) are rising together.
Perhaps due to the attention from Grayscale, a giant in asset management, major privacy coins have seen good gains in the past 24 hours. According to CoinGecko data, the current price performance of the top five privacy coins in terms of market cap is as follows:
Monero: $122.84, up 3% in the past 24 hours
MASK: $4.34, up 6.8% in the past 24 hours
ZEC: $27.13, up 12.6% in the past 24 hours
DASH: $30.12, up 4.2% in the past 24 hours
DCR: $17.88, up 3.4% in the past 24 hours.
Will the SEC approve the Grayscale privacy ETF?
Privacy coins are cryptocurrencies created with privacy as the primary focus and center. Their characteristic is to provide higher anonymity than other cryptocurrencies like Bitcoin by obscuring transaction details, including the parties involved and the amounts.
However, this feature of privacy coins has also made them prone to abuse by criminals, such as money laundering and dark web transactions. This has put pressure on privacy coins from regulatory agencies in various countries. The EU has previously stipulated in its Markets in Crypto-Assets Regulation (MiCA):
Therefore, it is currently uncertain whether the SEC, which already has a crackdown attitude towards cryptocurrencies, will approve the related ETF submitted by Grayscale. We need to continue to monitor the developments.