ETH (ETH)

Grayscale Research suggests that Zcash, a digital currency with privacy features, has the potential to challenge Bitcoin's dominance due to its unique attributes. While Bitcoin benefits from strong network effects, Zcash offers financial privacy, active development against cybersecurity risks, and cross-chain capabilities, which may be increasingly valuable in an AI-driven era. Despite Zcash's significant price appreciation, Grayscale believes it remains undervalued and could capture further market share by offering "must-have" features that Bitcoin lacks.

The Zcash ETF (Ticker: ZCSH), built by Grayscale, has started trading on NYSE Arca, offering the first spot exposure to ZEC, the native digital currency of the Zcash network. ZCSH provides investors with access to a privacy-focused digital asset through a familiar exchange-traded product structure. Grayscale believes that as AI advances, demand for financial privacy will increase, making Zcash a compelling long-term investment.

Grayscale Research suggests that current Bitcoin prices may offer a favorable entry point for long-term investors. This assessment is based on three factors: the intact structural adoption trend, the current deep stage of the bear market (10 months in), and a broadly favorable macro outlook, despite potential short-term downside risks from interest rate hikes.

The SEC has proposed "Reg Crypto," a new set of rules designed to facilitate token-based fundraising for entrepreneurs on blockchain infrastructure. This move aims to provide a clear regulatory path for capital formation through newly issued tokens, addressing previous ambiguities that pushed such activities overseas. The new guidelines are expected to stimulate issuance activity in the US, driving value to underlying blockchains like Ethereum, Solana, and BNB Chain.

Grayscale Investments Inc. has filed a Form S-1 registration statement with the U.S. SEC for an initial public offering under the symbol "GRAY" on the NYSE. The company, focused on digital assets since 2013, reported approximately $35 billion in assets under management as of September 30, 2025, with its Bitcoin and Ethereum Trusts accounting for the majority of its portfolio and revenues. The filing highlights significant risks including market volatility, regulatory uncertainties, and competitive pressures.