The Zcash ETF (ticker: ZCSH) has entered into a new custody agreement with Anchorage Digital Bank N.A. to store a portion of its ZEC holdings. The filing, dated September 29, 2026, details the Sixth Amendment to the Master Custody Service Agreement, which allows the Trust to utilize Anchorage Digital's services.
Grayscale Investments Sponsors, LLC, the Sponsor of the Trust, executed the agreement on behalf of the fund. Under the terms, Anchorage Digital will provide custody and safekeeping services for a portion of the Trust’s ZEC. The Sponsor retains the discretion to determine the specific amounts held at either custodian.
It is important to note that Coinbase Custody Trust Company, LLC remains the Trust’s primary custodian. The existing custody arrangement with Coinbase is unaffected by the new agreement. The Sponsor intends to use this expansion as part of its risk management strategy as the Trust’s assets grow.
Regarding the specific allocation, the Sponsor has not yet determined the total amount of ZEC to be moved to Anchorage Digital. The filing states that the addition of this custodian reflects the Sponsor’s ongoing risk management approach.
Under the agreement, Anchorage Digital will withdraw ZEC from its account upon Sponsor instruction to pay the Trust’s Sponsor’s Fee and any Additional Trust Expenses. The custodian generates private keys and public keys for the assets and retains custody of the private keys at all times. The hardware security module used to safeguard these keys is located in the United States.
The agreement includes specific provisions regarding blockchain forks. In the event of a fork of the Zcash blockchain, Anchorage Digital may temporarily suspend services and determine whether to support either branch of the protocol. The custodian is required to use commercially reasonable efforts to avoid ceasing to support both branches.
Anchorage Digital is required to maintain commercial crime insurance or a fidelity bond with limits of not less than $100 million in the aggregate. This coverage is intended to protect against theft of money or property under the custodian’s care, including digital assets in cold storage. The Sponsor notes that shareholders cannot be assured that the Additional Custodian will maintain adequate insurance or that such coverage will cover losses with respect to the Trust’s ZEC.
