00:00Talk to us about why make the trade sorry the transition from a trust to an ETF.
00:06Yeah so Grayscale has a number of products that started off as trusts and the goal was always to
00:10uplift them into ETFs. They are still 33 act grant or trust but now they trade on markets
00:16on exchanges like NYSE ARCA where our Zcash product trades. And this is a really good way
00:22for investors to be able to access two-way flows. They can create and redeem into the products. They
00:27can trade them on secondary markets just like any other ETF. They can access now Zcash in a very
00:33transferable way that they're able to access other products. I'm wondering about demand for Zcash. I
00:38mean I think it's fair to say they're they're in recent history there was this idea that there would
00:43be a lot of different cryptocurrencies. But Bitcoin is really the one that still gets the vast majority
00:50of the flows. What is the interest in Zcash right now and who is it from. Yeah this is certainly
00:55true
00:56and we do still see the majority of interest in Bitcoin. A lot of people are new to crypto investing
01:01and Bitcoin is a logical place to start. But if you think about Zcash it's actually similar to Bitcoin
01:06in the sense that it has a cap supply. It's a proof of work asset but it also layers in
01:12additional
01:12features like privacy. It is a privacy token. And in that way if you don't want all of your
01:18information transmitted on the blockchain it's a way for you to actually elect to be in what's called a
01:23shielded pool. That way you can still participate in blockchain transactions but you're not
01:28broadcasting all of your information publicly. Now you can choose to reveal that information if
01:33you'd like. And that's another way that it becomes very auditable and a way that we can enforce
01:37compliance within this protocol. OK. So Zcash ETF starts trading today. You look at ZEC it's up 60 percent
01:44in the past week. Zcash itself. When you look at flows you look at XRP ETFs. They pulled in 40
01:50million
01:50dollars last week. Solana got 28 million. Bitcoin to Tim's point pulled in almost two billion dollars.
01:57Every altcoin ETF gets crumbs compared to Bitcoin. So why will Zcash be different than all those other
02:04altcoin ETFs? Yeah. So one reason that we think that Zcash is different is because of this privacy
02:09feature especially in the era of AI that we find ourselves in now. Privacy is becoming increasingly
02:14more important to investors. So altcoins like you said they are further down the tail. A lot of
02:20investors start with Bitcoin but they are looking for ways in which they can branch out beyond that.
02:24And we think that an investment like Zcash is a great way to diversify beyond Bitcoin.
02:30You talked about the similarities between Zcash and Bitcoin but Bitcoin never had a counterfeiting bug and
02:38there was a counterfeiting vulnerability a couple months ago with with ZEC. How do you pitch the
02:43security angle here to institutions after that bug? Yes. So this is true. But one thing that I think is
02:49important to highlight is that this was actually the Zcash foundation that went out and asked for this sort
02:55of audit of their protocol. Now it was proactively found and proactively disclosed. And they were able to
03:02implement a fix called the Ironwood upgrade that actually addressed this before any assets were lost or taken.
03:07But it did still cause a mark like a crash. And it did has a decline in prices. Six thirty
03:12to two fifty. Yes.
03:14This is accurate. But we think that overall the ability of them to find this proactively to fix it before
03:19anything
03:20happened. This is not like cold card that we've been talking about in the past few weeks. This was a
03:24very
03:24proactive very mature way to address the exploit. And so we think that that is indicative of this maturity of
03:31the asset.
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