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Zcash surged sevenfold while Bitcoin fell 30%, prompting the Winklevoss twins to file a non-binding $100 million ZEC spot ETF with the SEC.
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Gemini's custody revenue collapsed 67% to $0.6 million in Q2, making the ETF filing a strategic lifeline for the company rather than a ZEC price driver.
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WINK would enter as Zcash's second ETF, competing with Grayscale's ZCSH, which already attracted $306 million, likely splitting rather than expanding investor demand.
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Tyler and Cameron Winklevoss's investment fund has announced plans to potentially invest up to $100 million in a new Winklevoss Zcash ETF. This fund would hold Zcash (CRYPTO:ZEC) and trade on Nasdaq under the ticker WINK. The filing for this ETF was submitted to the SEC on October 6, 2026.
The $100 million figure is only an indication of interest, not a guarantee. The filing states that these indications are "not binding agreements or commitments to purchase," meaning the Winklevoss Capital Fund could decide to invest the full amount, part of it, or none at all.
The Winklevoss twins have chosen Zcash, a privacy-focused cryptocurrency that allows users to obscure payment details, which has outperformed Bitcoin (CRYPTO:BTC) significantly over the past year. Zcash has surged more than sevenfold, reaching $1,367, while Bitcoin has seen a decline of about 30%. So, could this investment interest directly impact ZEC?
How the Winklevoss Zcash ETF Would Work
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WINK would function as a spot ETF, meaning its shares would trade like stocks while the fund holds actual ZEC coins behind them. The fund plans to charge an annual fee of 0.25%, with the coins securely stored offline in cold storage by Gemini Trust Company, part of the Winklevoss twins' own Gemini exchange group. However, the filing notes a potential conflict of interest due to ties between the custodian and the fund's sponsor.
Cypherpunk Technologies ( NASDAQ:CYPH ), a crypto treasury company that holds ZEC on its balance sheet, will act as the fund's adviser as its "Zcash Ecosystem Partner." At the end of June 2026, Cypherpunk owned about 323,000 ZEC, nearly 2% of the total supply. Winklevoss Capital has also previously led a $58.88 million private share sale for Cypherpunk.
In this arrangement, one family of companies would sponsor the fund, hold its coins, and provide advice, while also backing the largest publicly listed holder of ZEC. This creates a concentration of risk within Gemini.
Why Gemini Needs the Zcash ETF Custody Business
Gemini Space Station ( NASDAQ:GEMI ), the Winklevoss twins' public company, urgently needs new revenue streams. Its custody business reported just $0.6 million in revenue for the second quarter of 2026, a dramatic 67% drop from the previous year, while overall revenue was $45.5 million.
In that same quarter, Gemini posted a loss of $107.7 million, reducing its cash reserves from $252 million at the end of 2025 to $189 million. The company has also left several international markets and reduced its workforce by about 30% since the beginning of the year. Currently, GEMI shares are trading at $4.68, down more than 80% from their initial trading price in September 2025.
Securing custody rights for a Zcash ETF would provide the struggling custody business with much-needed fees. Thus, the filing is a strategic move for Gemini, regardless of whether ZEC's price increases.
How Much ZEC Could $100 Million Buy?
At the current price of $1,367, $100 million could buy about 73,000 ZEC, roughly 0.4% of the total coins in circulation. This could boost demand, but it depends on Winklevoss Capital following through with the purchase and the SEC approving the WINK ETF.
WINK would also enter the market as the second Zcash ETF; Grayscale's Zcash ETF ( NYSEARCA:ZCSH ) has traded since August 25, 2026, and has amassed $306 million since its launch. As a result, WINK may divide existing demand rather than attract new investors.
Additionally, regulatory challenges remain. A proposed bill, the CLARITY Act, aimed at establishing federal rules for crypto markets, failed to advance in the Senate on September 15, 2026. This adds uncertainty regarding regulatory treatment of coins like ZEC.
Will the Winklevoss Zcash ETF Affect ZEC's Price?
Not at this stage. The Winklevoss Zcash ETF primarily benefits Gemini by creating a potential custody agreement for a struggling business line, while ZEC holders only gain announcements and a non-binding pledge from the twins.
For ZEC to see real benefits, three key events must occur: The SEC must approve the WINK ETF, the fund must start trading, and Winklevoss Capital must turn its interest into actual share purchases, leading the fund to buy ZEC. If any amendments reduce the $100 million pledge, or if the fund faces SEC delays, this pledge could remain a headline without directly affecting ZEC's price.
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