European asset manager 21shares has launched two physically-backed Exchange Traded Products (ETPs) in Europe, tracking the price of Zcash (ZEC) and Ether.fi’s governance token (ETHFI). The ETPs were listed on Euronext Paris and Amsterdam on Tuesday, marking an expansion of regulated access to privacy coins and decentralized finance (DeFi) tokens.
This development represents the first ETP for Zcash in the European market, following the existence of a US-listed Grayscale Zcash ETF. The new ETPs carry an annual management fee of 2.5%. The launch is seen as a step towards mainstream financial channels for these types of digital assets.
The introduction of these ETPs suggests an evolving regulatory landscape for privacy-focused cryptocurrencies and DeFi tokens. The ability for 21shares to list these products on major European exchanges may indicate a potential regulatory balance, though uncertainties remain regarding the exact regulatory mechanisms that facilitated these listings. The higher management fees for these ETPs could reflect ongoing compliance costs for emerging crypto assets and investor willingness to pay a premium for convenience.
Zcash, a privacy coin, utilizes a Proof-of-Work (PoW) consensus mechanism and has a fixed maximum supply of 21 million coins. Recent reports indicate that Zcash’s price has surpassed $1,500. Fortitude Digital Mining, a significant miner of ZEC, indicated that it mined approximately 28% of ZEC in the first half of 2026 and views Zcash as a valuable long-term mining target due to its PoW, fixed supply, and privacy features. The NU7 upgrade aims to shorten block times and increase transaction speed, though its impact on these metrics is not yet reported.
Ether.fi is a liquid staking protocol built on Ethereum. The launch of its ETP alongside Zcash highlights growing institutional interest in diverse segments of the digital asset market.
While the listings expand regulated access, uncertainties persist. It is unclear whether other privacy coins, such as Monero or Oasis Network, will see similar compliant products emerge in Europe. Additionally, the long-term sustainability of the 2.5% management fee for these ETPs, given potentially small Assets Under Management (AUM), remains a point of consideration. The narrative of Zcash as a ‘Bitcoin privacy alternative’ is still developing, with its validation in institutional investment yet to be fully determined.
The expansion of ETPs for Zcash and Ether.fi by 21shares occurs within a context of increasing institutional adoption of privacy coins, evidenced by the prior launch of a Zcash ETF in the US. This trend could signal a broader shift in investment strategies and regulatory tolerance towards these asset classes, though the full implications and long-term viability are subject to ongoing market and regulatory developments.
Why This Matters
The materials describe a narrow update: European asset manager 21shares listed two physically-backed Exchange Traded Products (ETPs) on Euronext Paris and Amsterdam. Whether other privacy coins (Monero, Oasis Network) will see compliant products emerge in Europe.
Broader Context
Source materials place the factual news in this context: 21shares previously listed Zcash and Ether.fi ETPs.
