Institutional-Grade Access to Privacy Coins and DeFi Arrives in Europe
The European investment landscape has expanded with the introduction of two new crypto-focused exchange-traded products (ETPs) by asset manager 21Shares, listed on Euronext exchanges in Paris and Amsterdam.
Product Breakdown: Physical Backing and Fees
Both ETPs are physically backed, holding the underlying cryptocurrencies directly. One product tracks Zcash (ZEC), a cryptocurrency known for its enhanced privacy features. The other provides exposure to ETHFI, the governance and utility token of the decentralized finance protocol Ether.fi.
This allows investors to gain exposure to these assets through a standard securities brokerage account, without the technical complexities of self-custody. This convenience comes at a cost, however, with both products carrying a total expense ratio of 2.5% annually—higher than most European Bitcoin and Ethereum ETPs.
Zcash: Riding a Wave of Market and Regulatory Momentum
The launch of the Zcash ETP in Europe follows closely on the heels of Grayscale's Zcash trust (ETF) listing on NYSE Arca in the US under the ticker ZCSH. This coordinated transatlantic rollout highlights growing institutional interest.
The timing aligns with a period of remarkable performance for Zcash. Its price has surged approximately 1100% over the past year, briefly surpassing $1,500. This rally has prompted some investors to view it as a potential alternative to Bitcoin within a diversified crypto portfolio.
Market observers suggest that "later-mover" coins like Zcash, with their focus on specific technological advantages like privacy, could potentially carve out a niche despite Bitcoin's dominant network effects.
Beyond Trading: Mining Sector Takes Notice
The heightened interest in Zcash is also visible upstream in the mining industry. One mining firm reported that it accounted for roughly 28% of all ZEC mined in the first half of 2026. The company cited Zcash's proof-of-work model, fixed supply cap, and core privacy features as key factors in their strategic decision to allocate resources to its network.
Implications and Looking Ahead
The debut of these ETPs, particularly Europe's first Zcash product, is a significant development. It creates a regulated, familiar pathway for institutional and retail investors to access privacy-focused and specific DeFi assets. Furthermore, it signals that traditional finance is growing more comfortable with the breadth of the crypto asset class, moving beyond just Bitcoin and Ethereum.
As regulated product offerings continue to diversify, the integration between crypto assets and the traditional financial system is poised to deepen, promising greater liquidity and broader market participation.