🚨 GRAYSCALE FILES APPLICATION FOR A GRAYSCALE ETF PROFILE TO GENERATE INCOME FROM ZCASH
Grayscale has just submitted an application to the SEC for the ZCSH High Income ETF, a new product that uses options tied to Zcash ETF products to generate income for investors.
The key point is that the fund does not directly hold ZEC.
Instead, the proposed strategy is to use call and put options linked to ZCSH, while selling short-dated call options to collect premium and distribute income on a regular basis, expected to be once every two weeks.
However, selling calls also means the fund may have its upside capped if Zcash rises sharply beyond the option’s strike level.
Personal view:
I think this is a notable step in how traditional financial products are building additional tools to generate cash flow from crypto.
Rather than only providing exposure to ZEC, Grayscale is trying to introduce more options strategies into the Zcash ETF ecosystem.
What I will watch is the actual distribution level and the fund’s ability to sustain income during periods of strong ZEC volatility, because “High Income” does not mean a fixed or guaranteed yield.
👇 HOT COIN TRADING HERE 👇
$ZEC
$QNT
$SEI
Grayscale has just submitted an application to the SEC for the ZCSH High Income ETF, a new product that uses options tied to Zcash ETF products to generate income for investors.
The key point is that the fund does not directly hold ZEC.
Instead, the proposed strategy is to use call and put options linked to ZCSH, while selling short-dated call options to collect premium and distribute income on a regular basis, expected to be once every two weeks.
However, selling calls also means the fund may have its upside capped if Zcash rises sharply beyond the option’s strike level.
Personal view:
I think this is a notable step in how traditional financial products are building additional tools to generate cash flow from crypto.
Rather than only providing exposure to ZEC, Grayscale is trying to introduce more options strategies into the Zcash ETF ecosystem.
What I will watch is the actual distribution level and the fund’s ability to sustain income during periods of strong ZEC volatility, because “High Income” does not mean a fixed or guaranteed yield.
👇 HOT COIN TRADING HERE 👇
$ZEC
$QNT
$SEI
