The Winklevoss twins want a piece of the privacy coin action, and they’re asking the SEC for permission to call it “WINK.”
Cameron and Tyler Winklevoss filed an S-1 registration statement Monday with the Securities and Exchange Commission for a spot Zcash exchange-traded fund. The fund would hold ZEC directly and track its price, trading on Nasdaq under the ticker “WINK.” The twins’ crypto exchange, Gemini, would serve as custodian, holding the trust’s ZEC in cold storage.
The Deal Behind the Name
The Winklevoss Capital Fund has expressed a non-binding interest in purchasing up to $100 million of the shares being offered. This is a sign of support, but it does not amount to a guarantee.
Cypherpunk Technologies, the Winklevoss-backed Zcash treasury company, is also involved. It will advise the trust as its “Zcash Ecosystem Partner” on protocol matters and coinholder voting.
Why Zcash Is Hot Right Now
Zcash is a privacy coin that uses zk-SNARKs cryptography to conceal the sender, recipient and amount of a transaction. Once treated as a regulatory pariah, ZEC has climbed into the top ranks of digital assets this year.
A sudden increase in interest has come from growing worry about how money is watched and from a large amount of institutional packaging of assets. Grayscale, the crypto asset manager, recently changed its Zcash Trust into a spot ETF in August and later moved to split its shares. 21European shares listed the first Zcash exchange-traded product.
Adding the industry’s most recognizable set of twins to the WINK listing would provide a notable boost to the push.
The Risks the Filing Acknowledges
The filing doesn’t hide the dangers. It flags ZEC’s extreme volatility and the unique vulnerabilities of privacy coins. It specifically notes a soundness bug found this year in Zcash’s Orchard shielded pool, which briefly sent ZEC down roughly 50% before the network patched it.
The fund would follow a highly volatile digital asset, just like all spot crypto ETFs do. Investors stand to lose big or win big on a coin that has surged over 2,000% in the last year.
What Happens Next
Before trading can begin, the SEC must still approve the filing. If that approval is granted, the fund would come with a 0.25% sponsor fee attached.
It is worth noting the timing. The twins are entering a market that has already seen two major institutional entries, from Grayscale and 21Shares, before they arrive.
Our View on the Move
The ticker “WINK” is a clever play on the Winklevoss surname.
The actual danger is present. The filing flags the volatility and the unique vulnerabilities of privacy coins, and it also notes the soundness bug found in Zcash’s Orchard shielded pool.
The jump in question is whether the SEC will agree. The twins have filed and chosen a name that draws attention.
Key Facts Box
- Ticker: WINK
- Sponsor fee: 0.25%
- Custodian: Gemini
- Potential investor: Winklevoss Capital Fund ($100 million non-binding commitment)
- Advisor: Cypherpunk Technologies (Zcash Ecosystem Partner)
Trading cannot begin until the SEC gives its approval. Whether WINK or not, the Zcash tale has further chapters to tell.
Source material: “Another Zcash ETF Is Coming: Winklevoss Twins File for 'WINK',” Decrypt.
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