Early Bitcoin backers turn to Zcash as privacy trade heats up again

May 16 — Early cryptocurrency investors are ramping up bets on privacy-focused token Zcash as Bitcoin's march into the mainstream weakens some of its original privacy appeal, the Wall Street Journal reported. Several long-time Bitcoin supporters, including Gemini cofounders Cameron and Tyler Winklevoss, have increased their exposure to Zcash, viewing its "shielded transactions" as closer to Bitcoin's early-era ideals. Grayscale Investments is also seeking to broaden access. The firm is reportedly working to convert its Zcash trust into an ETF, targeting easier participation for institutional and retail investors. Grayscale founder Barry Silbert called Zcash "the Bitcoin of 2013," saying the token is reviving interest in privacy and decentralization. Zcash has surged about 50% over the past month and more than 1,000% over the past year, far outpacing Bitcoin. Even so, the report noted its market capitalization of roughly $8.9 billion is a fraction of Bitcoin's, leaving it in high-volatility small-cap territory. Analysts attribute the rally to a renewed "privacy" narrative. As regulation tightens globally and on-chain activity becomes more transparent, investors are re-evaluating the role of financial privacy, even as regulators step up scrutiny tied to money laundering and illicit-finance risks.