Zcash: The Paris stock exchange suspends the CoinShares ETP, why?

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https://cryptoast.fr/zcash-bourse-paris-suspend-etp-coinshares-pourquoi/

This Wednesday, July 28 was to mark the launch of the brand new exchange-traded product (ETP) dedicated to Zcash (named: ZCSH) on the Euronext Paris stock exchange. A financial product developed by the leading European asset manager specializing in cryptocurrencies, Coinshares, which has clearly encountered some teething problems.

Indeed, while this listing was to begin at the opening of the Paris stock exchange, a notice was published by the company Euronext the same day regarding its outright suspension until further notice. A surprising decision, especially since the official document provided no real explanation.

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Questions were finally raised in the morning, following the official statement from Euronext spokesperson, Flavio Bornancin-Tomasella, interviewed by the Cointelegraph media. Indeed, he explained that this trading suspension was “strictly limited to operational settlement requirements”.

It therefore appears that the suspension of the CoinShares Zcash ETP occurred following the identification of a purely technical problem. Indeed, the Paris Stock Exchange justified the establishment of this procedure following concerns about the settlement-delivery requirements of the central securities depository (CSD), the financial institution which centralizes, stores and secures securities on the financial markets.

A decision visibly contested by Coinshares, whose spokesperson told the crypto media Unchained that “the regulation has absolutely nothing to do with CoinShares”, due to its status as issuer. Regardless, no additional information has been published by Euronext to more clearly explain the reason for this last minute suspension.

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A silence which, however, did not prevent the situation from unraveling. Indeed, after approximately three hours of waiting, a new notice from Euronext indicated the listing of Coinshares' Zcash ETP on October 28 on the Paris stock exchange, without ever identifying the settlement capacity that was lacking or whether the CSD now fully supports it.

With this ETP, the Coinshares company becomes the fourth to offer a financial vehicle of this type applied to Zcash in Europe. As a result, its ZCSH also becomes the second ETP of its kind to be available on Euronext Paris, with the Zcash ETP (ZCASH) of 21Shares, however offering much lower management fees, set at 1.5% compared to 2.5% for the competition.

Machine-translated from French