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The privacy-focused cryptocurrency Zcash has increased approximately 19 times in the past year, but its market capitalization is still less than 1% of Bitcoin. Digital asset management company Grayscale states that financial privacy, cybersecurity development, and cross-chain connectivity capabilities may drive Zcash to further expand its market share. As of today, Bitcoin's market capitalization is $1.56 trillion, while Zcash's market capitalization is $13.74 billion, about 0.88% of Bitcoin's, with Bitcoin's market cap being approximately 114 times that of Zcash.Grayscale estimates that if ZEC reaches 2%, 5%, and 10% of Bitcoin's market capitalization, the corresponding prices would be $1,622, $4,054, and $8,109, respectively; these scenarios are not price predictions. Grayscale's Zcash ETF began trading on NYSE Arca under the ticker ZCSH, moving from OTCQX to NYSE Arca, providing investors with spot ZEC exposure without the need to directly purchase tokens or manage wallets and private keys. Zcash uses proof-of-work and has a fixed supply of 21 million coins, supporting the concealment of transaction details through zero-knowledge proofs. Its intents technology can coordinate cross-chain transactions based on user goals, such as exchanging other digital assets for ZEC.

The asset management company Grayscale's crypto research team stated in a report that the so-called "debasement trade" is favorable for Bitcoin. The head of research at the institution, Zach Pandl, pointed out in the report that uncontrolled government debt growth undermines the credibility of fiat currencies, prompting investors to seek alternative stores of value such as physical gold and certain cryptocurrencies, with Bitcoin being the primary beneficiary.The report states that U.S. public debt has surpassed $40 trillion, and the Treasury is conducting bond buybacks to alleviate rising borrowing costs, but the core deficit still exists. Grayscale believes this may drive investors towards debasement trades involving Bitcoin, Ethereum, and Zcash. The report also notes that the buybacks themselves indicate a problem—the heavy growth of government debt is driving up borrowing costs, and the Treasury is merely treating the symptoms (rising bond yields) without addressing the root cause of the structural deficit.As Bitcoin began to surge last week, the dollar experienced its worst week in August and fell to a three-month low. As of Friday afternoon New York time, Bitcoin was trading at approximately $77,493, having reached a high of $81,281 earlier in the week; it has remained relatively flat over the past 24 hours but has risen over 20% in the past 30 days.

According to Arkham monitoring, addresses related to Grayscale Bitcoin Trust transferred 340.449091 BTC to two addresses including Coinbase Prime Deposit, worth approximately $26.9186 million.

Grayscale's research director Zach Pandl stated that over the past year, during the rise of risk assets driven by AI, Bitcoin's trading performance has been more aligned with high-beta assets, but this situation may be reversing. The 90-day correlation between Bitcoin and the Nasdaq 100 index has dropped from over 60% to about 33%, while its correlation with gold has risen from slightly above 0 at the beginning of the year to over 50%. Grayscale believes this change may indicate that investors are refocusing on Bitcoin's scarcity, monetary independence, and store of value function.Meanwhile, the U.S. federal debt recently surpassed $40 trillion, and the ongoing fiscal deficit along with rising long-term U.S. Treasury yields has led the market to once again pay attention to assets that can hedge against the deterioration of fiscal and monetary fundamentals. Pandl pointed out that Bitcoin has no central issuer, its issuance rules are transparent, and its maximum supply is fixed at 21 million coins. In an environment where the long-term purchasing power of fiat currency is being reassessed, Bitcoin can serve as a scarce and more liquid alternative asset beyond gold. Bitcoin and other scarce digital assets may be entering a more favorable market phase.

According to a report by Fortune, Grayscale CEO Peter Mintzberg wrote that Bitcoin surged about 20% last week, marking the strongest three-day increase of 2023, as the crypto winter gradually thaws. However, he warned that market observers are still overly focused on short-term price fluctuations, neglecting the long-term structural growth of digital assets.Mintzberg emphasized two core driving forces: first, institutional demand continues to expand, with daily inflows into Bitcoin spot ETPs exceeding $500 million in 2025, approximately 12 times the daily new supply from miners; a 2026 EY survey shows that 73% of institutional investors plan to increase their allocation to digital assets. Second, the adoption of blockchain by enterprises is accelerating, with about 60% of Fortune 500 executives indicating that their companies are advancing blockchain projects in 2025, and companies like Fidelity, Visa, and Stripe are all positioning themselves in the stablecoin business. He also pointed out that AI and public chain technology are complementary, and new demands such as machine-native micropayments and cross-border instant settlements will further drive the implementation of blockchain. As the regulatory framework becomes increasingly clear, digital assets are accelerating their integration into the mainstream financial system.

Grayscale Research stated that Zcash (ZEC), as a decentralized digital currency with privacy features similar to Bitcoin, is expected to pose a real challenge to Bitcoin's network effects.Grayscale believes that Zcash has advantages such as financial privacy not available with Bitcoin, ongoing development to address network security risks like quantum computing, and cross-chain connectivity through "intention" technology. These features may become increasingly important in the AI-driven surveillance era.Grayscale pointed out that ZEC has increased approximately 19 times over the past year, but its current market capitalization is still less than 1% of Bitcoin's. The institution believes this indicates that there is still competitive space in the currency-like crypto asset sector, and Zcash may continue to expand its market share. However, Grayscale also emphasizes that investing in Zcash is high-risk, and even if it successfully challenges Bitcoin, it is unlikely to rise in a straight line.

According to BBX data, yesterday global digital asset funds, compliant financial infrastructure, and institutional merger and acquisition transactions disclosed the latest official ledgers and capital flows. The core dynamics are as follows:Grayscale Zcash spot ETF officially listed on the NYSE Arca: Grayscale's Grayscale Zcash Trust has officially completed its conversion and is now trading as a spot ETF on the New York Stock Exchange Arca, with the stock code "ZCSH". A Grayscale spokesperson stated that the management fee for this ETF is 2.5%, and all income generated will be reinvested into the Zcash ecosystem to promote and enhance the infrastructure and broader development of this privacy network.tZERO and Sui reach strategic cooperation to connect compliant securities infrastructure in the US stock market: Leading blockchain financial infrastructure platform tZERO announced a strategic partnership with the public chain Sui. tZERO will provide full-process support for regulated digital asset securities trading within the Sui ecosystem, covering asset issuance, transfer agent, asset custody, secondary matching transactions, compliance review, and clearing and settlement, significantly expanding Sui's ability to access US domestic financial infrastructure that meets institutional standards.Crypto custodian Copper receives a $200 million potential acquisition offer, valuation down over 90% from peak: The UK-based veteran crypto custodian Copper, once valued at $2.5 billion, has recently attracted interest from new potential buyers, but the acquisition offers received so far are only about $200 million. This valuation not only has significantly decreased but is also far below the $500 million acquisition intention proposed by Cantor Fitzgerald a few months ago, reflecting the valuation pressure in the institutional custody sector amid the transition between bull and bear markets and regulatory reshuffling.RockawayX plans to raise $150 million for a new liquidity fund: Digital asset investment firm RockawayX, which manages approximately $2 billion in assets, announced that it is currently seeking to raise $150 million for its new "Liquidity Opportunity Fund." Previously, RockawayX successfully completed the full acquisition of the crypto hedge fund Relayer Capital, continuously expanding its layout in the secondary market and liquidity strategies.

According to Decrypt, Grayscale's Zcash spot ETF has officially been listed on the NYSE Arca, with the stock ticker ZCSH, becoming the world's first exchange-traded product providing exposure to Zcash (ZEC).The product is a successor to the Grayscale Zcash Trust, which was established in October 2017 as a private placement. Grayscale stated that ZCSH aims to meet the demand from investors for exposure to cryptocurrency assets beyond Bitcoin and Ethereum through traditional brokerage accounts.Steve Vanourny, head of Grayscale's index business, stated that Zcash has nearly a decade of network history, a fixed supply cap of 21 million coins, and a PoW mechanism, while also offering optional privacy features that Bitcoin does not have. The company positions ZCSH as a high-risk satellite position in a digital asset portfolio. It is worth noting that at the time of ZCSH's listing, the serious privacy system vulnerabilities previously disclosed by Zcash are still a concern in the market.In May of this year, researchers discovered exploitable vulnerabilities in the Zcash Orchard privacy pool, which theoretically could allow attackers to forge ZEC. Zcash subsequently deployed an emergency patch in June and activated the Ironwood upgrade in July to replace the vulnerable Orchard privacy pool and limit the potential forged ZEC from entering circulation through new supply accounting rules. Grayscale stated that it will focus on the adoption of the Ironwood upgrade, network security, exchange support, and regulatory policies for privacy assets in the future.

Grayscale's research director Zach Pandl stated that investors are generally advised against trying to time the market, but from the perspectives of structural adoption trends, market cycles, and macro risks, the current Bitcoin price may provide a favorable entry point for long-term investors. Grayscale believes that the continued growth of government debt, the expansion of blockchain technology applications in the financial services sector, and intergenerational changes in portfolio construction indicate that the long-term adoption trend of Bitcoin remains solid.Currently, this round of Bitcoin bear market has lasted about 10 months, while previous bear markets typically lasted 11 to 12 months, suggesting that the market may have entered the later stages of the bear market. The macro environment remains the main source of uncertainty. If the Federal Reserve raises interest rates in the near future, Bitcoin may decline further; if there are no rate hikes, the market may have already reached its bottom. Grayscale stated that structural adoption, cyclical positioning, and the overall macro outlook are currently relatively favorable, but future performance remains uncertain.

Grayscale stated in a post on platform X that the rise of Bitcoin this week may signal a market turning point.It pointed out that historically, Bitcoin prices typically bottom out after a retracement of about 80% from the peak of the cycle; however, in this bear market, BTC has only retraced about 50% from its peak, which is a smaller decline than in previous cycles. The market had previously been discussing whether BTC would further decline in the fourth quarter of 2026, but Grayscale believes that although the downside risks have not been completely eliminated, this week's rebound may indicate that the market has formed a more sustainable bottom.

According to Bitcoin.com, Grayscale's research director Zach Pandl pointed out in an analysis report that if the SEC's proposed new regulations on crypto asset financing (Regulation Crypto Assets) are ultimately implemented, Ethereum, Solana, and BNB Chain may become the main beneficiaries.The proposal establishes two exemption paths: projects raising less than $5 million can be exempt from registration for four years, and projects raising less than $75 million can be exempt from registration for one year, with a conditional safe harbor designed to provide a clear domestic compliance path for crypto asset issuance and reduce the motivation for issuers to operate overseas. Pandl noted that tokenized financing has previously been hindered by regulatory ambiguity, and if the new regulations stimulate issuance activities, it will bring more U.S. issuers and investors on-chain, driving value back to underlying networks and native tokens such as ETH, SOL, and BNB. The proposal is still in the public comment phase, and the final rules may be adjusted based on public feedback and SEC review; increased network activity does not guarantee a rise in token prices.

According to on-chain analyst Onchain Lens (@OnchainLens), Grayscale's GLNK ETF received 132,950 LINK from Coinbase Prime 6 hours ago, worth approximately $1.53 million.Currently, the ETF holds a total of 10.66 million LINK, with assets under management (AUM) of approximately $124.16 million.

According to The Block, Grayscale submitted its fifth amendment application to the U.S. Securities and Exchange Commission (SEC) on August 21, further advancing its plans for the listing of the Zcash ETF. The latest application indicates that the product will officially be renamed "The Zcash ETF," with an annual management fee set at 2.5%, and plans to list on the New York Stock Exchange Arca under the code "ZCH," with Coinbase Custody Trust Company as the custodian and BNY Mellon as the transfer agent.This ETF will be converted from Grayscale's existing Zcash trust, which has been operating since 2017 and currently has assets under management exceeding $260 million. In the previous fourth amendment application, a subsidiary of Grayscale's parent company, Digital Currency Group, had negotiated to inject approximately 200,000 ZEC into the fund.

The Grayscale Zcash research report points out that as AI development brings new means of financial monitoring, Zcash's privacy features may become a necessary function in the AI era. Zcash achieves shielded transactions through zero-knowledge proofs, hiding the sender, receiver, and amount, possessing cash-like privacy attributes. Currently, shielded transactions account for about 90% of the transaction volume, with approximately 4.2 million ZEC shielded (accounting for 25% of the circulating supply).Grayscale notes that Zcash has a market capitalization of about $8 billion, which only accounts for 0.6% of its category "currency-type crypto assets" (total market capitalization of $1.4 trillion). If this category's share reaches 5%, the value of ZEC would be nine times its current value. The report believes that the market's current valuation of Zcash reflects the assumption that "privacy will remain marginalized," and if investors ultimately believe that privacy should receive a moderate premium, the current valuation may be underestimated. In terms of risks, the report mentions long-term risks such as regulation and quantum computing, but believes that Zcash's shielding technology and selective disclosure tools provide a pathway for compliance.

According to X user MaxForAI, Tencent has begun gray testing its brand new flagship model, Hunyuan Hy4. Some users have discovered that the model selection list in the Tencent Yuanbao App now includes Hy4, labeled as an expert-level model, ranking above Hy3 and DeepSeek. The official account @TencentHunyuan also shows this model option at the relevant entry.Last week, Tencent confirmed in its Q2 financial report that the larger parameter-scale Hy4 will be launched soon, further enhancing model performance and multimodal capabilities. Currently, Tencent has not officially released Hy4, and the outside world cannot confirm whether this is a small-scale gray test or an early opening of the entry, but based on the progress, the model's launch seems imminent.

According to BBX data, yesterday global US stock, Hong Kong stock listed companies, and asset management giants disclosed the latest developments in digital asset injection, compliance trust listings, and institutional-level custody, with the core information as follows:ZeroStack received a $1 billion Memecore token injection: 0G Treasury Company ZeroStack Corp. (NASDAQ: $ZSTK) announced that Puple AI Inc. and Blockcat Pte. Ltd. have reached an agreement to inject a total value of $1 billion in Memecore tokens (M) into the company. In exchange, ZeroStack will issue 3,500,000 shares of common stock, as well as pre-financing warrants to purchase up to 36,198,293 additional shares of common stock (with an issue price of $25.19 per share, more than 12 times the recent market price).Grayscale advances Zcash Trust listing on the NYSE Arca market: Grayscale submitted the fourth amendment of the registration statement for Grayscale Zcash Trust (ZEC) to the SEC, intending to list it on the NYSE Arca market (code: ZCSH). After listing, it will support authorized participants to continuously purchase and redeem shares (previously traded only on OTCQX and not redeemable). As of June 30, 2026, the trust holds approximately 2.3% of the circulating supply of ZEC, with a net asset value (NAV) of approximately $155.2 million; additionally, a subsidiary of Grayscale's parent company DCG is negotiating to purchase trust shares with approximately 200,000 ZEC.OSL Group's enterprise-level stablecoin USDGO connects to Ceffu institutional custody: Hong Kong listed company OSL Group (00863.HK) announced that its compliant enterprise-level stablecoin USDGO has officially become one of the custodial assets of the institutional digital asset custody platform Ceffu. Qualified Ceffu institutional clients can now directly deposit, hold, and withdraw USDGO through their exclusive custody accounts.

Grayscale submitted the fourth amendment to the registration statement for the Grayscale Zcash Trust (ZEC) to the SEC, intending to list the trust on the NYSE Arca market under the ticker ZCSH.After listing, authorized participants can continuously purchase and redeem trust shares, whereas previously the trust only supported trading on the over-the-counter market (OTCQX) and did not allow redemptions. As of June 30, 2026, the trust holds approximately 2.3% of the circulating supply of ZEC, with a NAV of about $155.2 million.In addition, a subsidiary of Grayscale's parent company DCG is in talks to purchase trust shares with approximately 200,000 ZEC, but no binding agreement has been formed yet.

Zach Pandl, the head of research at Grayscale, posted on the X platform comparing Ethereum to a "small country" and discussed the ETH issuance mechanism. He believes that Ethereum has only one core "government function": to protect property rights and value exchange within the system. Unlike traditional countries that provide public services through taxation, Ethereum primarily funds network security through "seigniorage," which is the issuance of new ETH.In this framework, the stakers responsible for maintaining network security are akin to a group providing public services, as they receive rewards through newly issued ETH. Therefore, Ethereum's staking mechanism and ETH issuance policy essentially constitute the network's fiscal and monetary policy. Zach Pandl pointed out that the Ethereum community needs to decide how much "new currency" should be used to cover network security costs. More security typically means stronger protection of property rights, but at the cost of a higher ETH issuance rate and potential other risks.For example, if network security increasingly relies on a few large staking service providers, there remains room for discussion about whether these providers can maintain the asset rights of all users completely neutrally. Pandl believes that, just as in traditional economies, no one knows the "optimal level" of government spending and currency issuance; the same applies to Ethereum. However, Ethereum has several key security thresholds, including: 1/3: an attacker reaching this ratio may affect finality; 1/2: affects blockchain fork choice; 2/3: can control the finality process. Some community members believe that the design of Ethereum's monetary and fiscal policy should consider the security trade-offs brought by these key ratios, while the current mechanism has not adequately incorporated these factors. However, the above analogy is not entirely accurate, as it does not yet involve other important factors such as the ETH burn mechanism, MEV, governance, etc.

According to Onchain Lens monitoring, Grayscale has transferred 572.9 BTC and 44,320 LINK from its Bitcoin Trust and Chainlink Trust wallets to Coinbase Prime, valued at approximately $35.9 million and $391,000, respectively.

Grayscale Research Director Zach Pandl stated that the two major blockchain networks, Ethereum (ETH) and Solana (SOL), are considering adjusting their token economic models to enhance asset scarcity by reducing future token supply growth through lowering annual inflation rates. As important native assets supporting stablecoins and tokenized asset ecosystems, the prices of ETH and SOL are primarily determined by supply and demand dynamics. If the relevant code upgrade proposals are approved, under unchanged conditions, lower supply growth may provide support for token prices.According to Grayscale's analysis, if the relevant adjustments are implemented, the supply inflation rates of BTC, ETH, and SOL will continue to decline over the next five years. By the end of 2031, the annual inflation rates for Bitcoin and Ethereum are expected to be around 0.4%, and Solana around 1.1%, which is lower than gold's annual supply growth rate of about 1.8% and the U.S. CPI inflation level of about 3.3%. Currently, these token economic adjustments are still in the community discussion phase. Among them, the Solana-related proposal has gained broader support and has a higher likelihood of implementation; the Ethereum proposal still requires further discussion.If the adjustments are implemented, staking users may face reduced token rewards, as part of the staking income comes from the issuance of new tokens. However, due to the decline in the growth rate of circulating supply, the scarcity value of the tokens may increase, potentially providing price support. For ETH and SOL holders who do not participate in staking, they may benefit directly; the final returns for stakers will depend on the balance between the decrease in rewards and the increase in prices. Zach Pandl concluded that ETH and SOL are becoming important digital commodities supporting stablecoins and the tokenization of real assets, and the economic model adjustments aimed at reducing inflation may further strengthen their scarcity attributes.