--- title: "Grayscale files a Zcash income ETF on options it says may not last" url: "https://etf.net/news/grayscale-files-a-zcash-income-etf-on-options-it-says-may-not-last-2026-09-28" published_at: "2026-09-28T12:13:32.000Z" updated_at: "2026-09-28T14:15:21.325Z" byline: "ETF.net Research" --- # Grayscale files a Zcash income ETF on options it says may not last Grayscale Funds Trust filed on September 25, 2026 for The ZCSH High Income ETF, a draft that would seek payouts every two weeks from options on The Zcash ETF, ZCSH, the fund that held $996 million. By ETF.net Research. Published Sep 28, 2026. On Friday, September 25, Grayscale Funds Trust filed a draft prospectus for The ZCSH High Income ETF, a fund that would seek payouts every two weeks by selling options on its own Zcash fund. Those options began trading on Tuesday, September 8, on The Zcash ETF, ZCSH. The next day the same trust filed The 2x Zcash ETF. This income draft followed on September 25, less than three weeks after the options opened, and it says a liquid market in them might not develop, or might not last. ZCSH holds Zcash. Grayscale's August 25 launch release called it a privacy-focused digital currency. On the day the options opened, Grayscale said assets had grown to more than $500 million, and that the new contracts gave investors a way to generate income. By Friday, ZCSH held **$996 million**. It charges 2.50% a year. Shareholders of ZCSH who are on the books at today's close, Monday, September 28, are due two extra shares for each share they hold. The sponsor announced the 3-for-1 split on September 18. The prospectus is still a draft. It asks to become effective on Wednesday, December 9, 75 days after the filing, if that schedule holds. The ticker, the exchange and the fee are blank. The name uses the letters ZCSH, but that ticker already belongs to the fund that holds the coin. ## What the draft would do The fund would be actively managed. It would buy calls and sell puts to follow a product such as ZCSH, then sell calls on that position. Selling a call collects a fee and gives away gains above a set price. That fee is the income. The prospectus says this converts a portion of the potential gain into current income. Annualized volatility on ZCSH was 137% as of Friday, which is why those premiums could look large. Chart: ZCSH jumped **14%** and **16%** on consecutive days Under its normal policy, 80% of the fund would sit in those options, counted by the size of the exposure rather than the cash paid for them. It intends to pay dividends from net investment income, if any, every two weeks. No amount is set. In the filing, high income means substantial option-premium income relative to the fund's assets, not any particular rate. The filing says that if the fund does not earn enough, distributions could be made up mostly, or entirely, of a return of capital, the investor's own money coming back. That cash generally is not taxed as income, but it lowers the cost basis of the shares. ZCSH is sponsored by an affiliate of Grayscale Advisors, the adviser the prospectus names for the new fund. The filing says that affiliate earns the sponsor fee, and that the new fund's trading could indirectly increase the fees the affiliate receives. ## What the same idea has paid Grayscale already runs this strategy on bitcoin and on ether, and it has said both funds would take the High Income name on or about September 17, the same name as the new draft. BTCC sells options on bitcoin products. ETCO does the same with ether. Each costs 0.66% a year. They held $17.7 million and $4.3 million. Over the year through September 14, BTCC paid out the equivalent of **70%** of its September 25 price. On some of those payouts, return of capital was the whole amount. It was 96% of the July 30 and August 13 payments, and none of the August 28 payment. No other issuer has filed a Zcash income fund. The 2x draft already has a competitor. On Thursday, September 10, the day after Grayscale filed The 2x Zcash ETF, ProShares Trust filed for ProShares Ultra Zcash ETF, which would seek twice the daily move in a Zcash index. Whether a market that opened on September 8 can support a payout every two weeks is the question the filing leaves open. Source: etf.net, https://etf.net/news/grayscale-files-a-zcash-income-etf-on-options-it-says-may-not-last-2026-09-28. Please cite the page URL.