Grayscale Investments plans to launch a new ETF, Grayscale Privacy ETF (PRVC), tracking data privacy solution providers and protocols like Zcash. Despite pushback from exchanges, the ETF aims to invest in companies adhering to data privacy regulations.
Grayscale submits application to the SEC for a novel exchange-traded fund (ETF) that aims to mirror the performance of companies and technologies specializing in data privacy, such as Zcash.
According to a legal document filed with the U.S. Securities and Exchange Commission (SEC), Grayscale Investments intends to introduce a fresh ETF, which will allocate a minimum of 80% of its total assets into providers of data privacy solutions, privacy-focused blockchain technologies, and protocols like Zcash (ZEC).
The anticipated Grayscale Privacy ETF (PRVC) will not directly invest in cryptocurrencies but will instead monitor the Indxx Data Privacy Index, which concentrates on five key areas including cybersecurity and protocols designed to safeguard privacy. Additionally, the ETF plans to reserve approximately 10% for privacy-centric protocols through ZCSH, Grayscale’s Trust for Zcash.
Grayscale asserts that the ETF employs a scoring mechanism to identify companies based on their revenue generated from the data privacy sector. Entities generating at least half of their revenue from pertinent areas and complying with data privacy regulations such as GDPR and CCPA will receive higher scores, according to the document.
Despite this application, ZEC and similar privacy-oriented cryptocurrencies are encountering resistance from centralized exchanges due to concerns regarding their potential utilization in illicit activities. Binance, for instance, disclosed its intention to expand coverage of its “Monitoring Tag” to encompass 10 additional tokens, including Monero (XMR) and Zcash.
Binance clarified that tokens labeled with its “Monitoring Tag” undergo thorough scrutiny due to their heightened volatility, subject to regular evaluations to ensure compliance with listing requirements. The platform alerted users that failure to meet these standards could lead to the removal of such tokens.