The first Zcash Digital Asset Trust (DAT) launched by the Winklevoss brothers via Cypherpunk Technologies coincided with record privacy demand and reshaped ZEC’s price dynamics. ZEC climbed 401.78% in the last month and 1,800% since April 2025, trading above $655 with a market cap over $8,000 million, but with sharp volatility including a 33% pullback in two days. This matters to institutional investors and privacy-focused users, raising questions about liquidity, compliance and custody.
The DAT signals institutional validation at a time of heightened interest in privacy coins. By backing a Zcash treasury company and launching the vehicle, the Winklevosses provided a channel aligned with regulated custody and management, matching demand from investors who prioritize privacy and secure structures.
Arthur Hayes urged holders to withdraw tokens from centralized exchanges and “shield them,” highlighting custody and privacy risks on centralized platforms. This stance amplified the debate between centralized compliance requirements and the privacy guarantees sought by ZEC users.
The Zcash halving around Nov. 18, 2025 cut the block reward from 3.125 ZEC to 1.5625 ZEC, tightening supply and acting as a direct catalyst for price. Market mechanics—short squeezes, retail FOMO and additional institutional attention (including mentions of actors like Grayscale in reports)—fueled outsized bullish and bearish swings.
Price outlook and considerations for investors
Greater institutional attention can boost liquidity and attract regulated capital, but it also heightens the need for clear compliance and custody frameworks. At the same time, guidance to move funds to non-custodial wallets underscores the tension between privacy objectives and KYC/AML obligations on centralized venues.
The halving reinforces the scarcity thesis and tightens the price–supply relationship. Short-term technicals from CoinCodex mark resistance at $701.81 and project a price near $503.78 for December 2025, with 2025 ranges between $410.10 and $652.15; scenarios for 2026 and 2030 span from moderate paths to more optimistic targets such as $1,000 in wave analyses and $1,567 cited by Yahoo Finance and BeInCrypto, though models vary widely.
Upcoming checkpoints include the $701.81 resistance and the December 2025 target near $503.78. These levels will help gauge whether institutional demand and post-halving scarcity can continue to support the rally or if volatility will reset price expectations.
