The Winklevoss twins filed an S-1 registration statement with the U.S. Securities and Exchange Commission to launch a spot exchange-traded fund (ETF) tied to Zcash (ZEC).

Decrypt, a blockchain media outlet, reported on Monday that the product would directly hold Zcash token ZEC and is seeking a Nasdaq listing under the ticker symbol WINK.

The proposed Winklevoss Zcash ETF is designed to give investors access to an investment linked to ZEC prices through a regular brokerage account without having to buy and store the token themselves. The sponsor fee is 0.25 percent.

Custody will be handled by Gemini, the cryptocurrency exchange founded by the Winklevoss twins. Gemini plans to store the ZEC held by the trust in cold wallets. Winklevoss Capital Fund also said it intends to buy up to $100 million worth of shares in the offering. The filing stated the plan is a non-binding commitment.

Cipherpunk Technologies, a Zcash treasury company backed by the Winklevoss side, will also participate as a "Zcash ecosystem partner". Cipherpunk will advise on protocol-related matters and coin-holder votes.

The filing comes as institutional investment products tied to Zcash expand. Zcash is a privacy coin that can conceal transaction senders, recipients and amounts using cryptographic technology called zk-SNARKs. It was treated for a time as an asset with a heavy regulatory burden, but it is returning to the forefront of the market this year as institutional product launches continue.

Grayscale converted its Zcash Trust into a spot ETF in August and later moved to split shares. 21Shares launched Europe’s first Zcash exchange-traded product (ETP). If WINK is listed, the Winklevoss twins would also join competition in Zcash spot ETFs.

The filing also warned about ZEC volatility and vulnerabilities unique to privacy coins. It cited a security flaw found this year in Zcash’s Orchard shielded pool and said the ZEC price fell about 50 percent at one point before the network fixed the problem through the Ironwood upgrade.

The filing alone does not mean trading will begin, and the SEC approval process still remains. Like other cryptocurrency ETFs, the product carries a high risk of investment losses because it tracks an underlying asset with large price swings. Still, with ZEC up more than 2,000 percent over the past year, the market is watching whether the filing will broaden institutional investment demand for privacy coins.