Zcash Surges 60% in a Week as Institutional Mining and ETF Optimism Mount

• Zcash (ZEC) has gained 60% over the past seven days, outperforming the broader market to reach a three-month high of approximately $383. The rally follows the launch of a compliant mining pool by Foundry Digital and a surge in the network’s shielded pool supply, which now holds over 31% of ZEC. Market participants are closely watching the April 28 deadline for the SEC’s decision on Grayscale’s application to convert its Zcash Trust into a spot ETF.

Zcash (ZEC) has emerged as the week’s top performer in the privacy sector, posting a 60% gain as a combination of institutional infrastructure and regulatory optimism drives renewed demand. The privacy-focused token spiked over 21% in the last 24 hours alone, reaching $383 and reclaiming key technical levels that have remained untouched since late 2024. This momentum comes as Bitcoin continues its steady climb, yet ZEC’s outperformance suggests a specific rotation into privacy-centric assets.

A primary driver for the surge is the entry of Foundry Digital, the world’s largest Bitcoin mining pool operator, which launched its institutional-grade Zcash mining pool this month. The initiative aims to provide a compliant mining environment for public companies and financial firms, addressing a long-standing gap in the privacy coin ecosystem. “Zcash has matured into an institutional-grade asset, but the mining infrastructure supporting it hasn’t kept pace,” said Mike Colyer, CEO of Foundry, noting that the pool will operate under rigorous SOC 1 and SOC 2 transparency standards.

Beyond mining, on-chain metrics signal deepening fundamental adoption. The percentage of ZEC held in shielded pools—which utilize zk-SNARKs to keep transaction details private—has surpassed 31%, representing nearly $2 billion in value. This growth in shielded supply is viewed by analysts as a sign of genuine utility rather than mere speculative trading. Furthermore, the Zcash Open Development Lab (ZODL) recently secured $25 million in funding from firms like Paradigm and Andreessen Horowitz to scale private financial tools, bolstering the long-term roadmap.

Traders are also positioning themselves ahead of a critical regulatory milestone. The SEC is expected to deliver a decision on Grayscale’s spot Zcash ETF filing by April 28. Following the closure of a previous SEC investigation into the Zcash Foundation earlier this year, sentiment has shifted toward the possibility of a “compliant privacy” narrative that could ease institutional onboarding. However, some analysts warn that the Relative Strength Index (RSI), currently sitting near 78, indicates overbought conditions that could lead to a short-term correction despite the bullish fundamental backdrop.

Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.