Grayscale seeks SEC approval for a brand new exchange-traded fund (ETF), which is able to monitor the efficiency of knowledge privateness firms and protocols like Zcash.
In a regulatory filing with the U.S. Securities and Alternate Fee (SEC), Grayscale Investments mentioned it plans to roll out a brand new ETF, that can make investments no less than 80% of its web belongings in information privateness resolution suppliers, blockchain-based privateness options and protocols like Zcash (ZEC).
The so-called Grayscale Privateness ETF (PRVC) won’t make investments instantly in crypto however will monitor the Indxx Knowledge Privateness Index, which focuses on 5 sub-themes like cybersecurity and privacy-preserving protocols. The ETF additionally plans to allocate round 10% to the privacy-focused protocols by way of ZCSH, Grayscale’s Belief for Zcash.
Grayscale says the ETF makes use of a scoring system to pick firms based mostly on their income derived from the information privateness section. Corporations with no less than 50% of income attributed to related sub-themes and adhering to information privateness rules like GDPR and CCPA would get greater scores, the doc reads.
Regardless of the submitting, ZEC and different privacy-centric cryptocurrencies are at the moment dealing with pushback from centralized exchanges, as issues about their potential use in illicit actions proceed to floor. In January, Binance announced its plan to increase “Monitoring Tag” protection to incorporate 10 further tokens, together with Monero (XMR) and Zcash.
Binance clarified that tokens with its “Monitoring tag” bear rigorous scrutiny on account of their heightened volatility, topic to common evaluations making certain compliance with itemizing standards. The platform cautioned customers that failure to satisfy these requirements may outcome within the delisting of tokens.