ZEC Rally Driven by ETF Demand and Short Squeezes

ZEC has evolved from a post-security-crisis recovery into the leading privacy coin in a broader market rally. The token recently traded above $800, while later CoinGecko data cited a 130.9% gain over 30 days and a 2,252% increase over one year. Its market capitalisation approached $20 billion, placing ZEC among the top 10 cryptocurrencies and above Monero, with more than 66.7% of the privacy-coin sector’s value. The rally has been supported by bullish commentary, short liquidations and institutional demand. Grayscale filed an amended application to convert its Zcash trust into an ETF, naming Coinbase Custody as custodian and BNY Mellon as transfer agent. A later report said Grayscale’s ZCSH product had attracted more than $500 million in assets within two weeks and held over 550,000 ZEC, although ETF-related claims remain subject to regulatory and market verification. Supply conditions have also strengthened the ZEC price narrative. Reduced issuance after the 2024 halving and the movement of roughly 29% of supply, or more than 5 million ZEC, into shielded pools have reduced apparent liquid supply. Short sellers, including a large Hyperliquid position reportedly linked to Garrett Jin, faced losses approaching $20 million. Zcash previously suffered a sharp sell-off after a disclosed vulnerability raised concerns about counterfeit ZEC creation. Developers released an emergency patch and completed the Ironwood upgrade, freezing an old pool containing about 3.66 million ZEC and introducing a mathematically verified replacement. Traders should treat ZEC as a high-volatility asset. ETF inflows, supply lock-up and further short squeezes could support the short-term trend, while profit-taking, limited liquidity, privacy-design criticism, governance disputes, founder rewards and European anti-money-laundering rules could trigger sharp reversals or restrict longer-term institutional access.