Hayes, co-founder of the former exchange BitMEX and now chief investment officer at Maelstrom Fund, shared the update via social media on November 7, 2025. He attributed the move primarily to ZEC’s rapid price appreciation, and referred to Zcash as “the 2nd largest LIQUID holding in the Maelstrom portfolio behind $BTC.”
Why Zcash Climbed the Ranks
The elevation of ZEC in Hayes’ portfolio comes during a sharp rally in Zcash’s price and underlying metrics. According to market data, ZEC recently surpassed a US $10 billion market capitalisation reclaiming a top-20 crypto ranking.
Key drivers cited include increased adoption of Zcash’s shielded transaction feature, surging activity in privacy-enabled transfers, and heightened investor interest in encryption-based currencies. Hayes pointed out that the growing number of “shielded ZEC” transactions allowed the coin to assume a more strategic role in his asset allocation.
What This Means for Zcash and Portfolio Strategy
For Zcash, this endorsement by a high-profile investor carries symbolic weight. It suggests that institutional or semi-institutional money is looking beyond Bitcoin and Ethereum, and beginning to allocate to assets with differentiated utility in this case, privacy and zero-knowledge technology.
From a portfolio standpoint, Hayes’ move may reflect a broader belief in the investment thesis: that Zcash is not merely an altcoin hedge, but a principal asset worthy of large allocation. His phrasing emphasising “liquid holdings” hints at an emphasis on assets that are both sizeable and tradable.
However, such a move also raises risk considerations. Building a large position in ZEC may subject the portfolio to volatility linked to regulatory scrutiny of privacy coins, infrastructure adoption timelines, and market sentiment. For followers of Hayes’ portfolio strategy, the relevance is clear: “Arthur Hayes Zcash second largest holding” and “Maelstrom Fund ZEC ranking behind Bitcoin”.
Market Reaction and Next Steps
In reaction to the announcement, market watchers noted heightened speculation around Zcash’s potential price targets. Hayes himself made bold comments in his post that ZEC could reach as high as USD 10,000.
Going forward, the key questions will include:
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Will Zcash sustain its position and liquidity relative to other altcoins?
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How will regulatory developments around privacy coins impact ZEC’s adoption and pricing?
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Will other large crypto investors follow Hayes’ lead and allocate more heavily into privacy-centric assets?
For now, this development sets a new benchmark in how influential crypto investors view allocation strategy not just among large-cap coins, but among assets with unique narratives like privacy.
FAQs
Q1: Who is Arthur Hayes and what is Maelstrom Fund?
Arthur Hayes is the co-founder of the crypto exchange BitMEX and now serves as chief investment officer at Maelstrom Fund, his family-office investment vehicle that holds substantial cryptocurrency positions.
Q2: What is Zcash and why is it rising in prominence?
Zcash (ZEC) is a privacy-centric cryptocurrency utilising zero-knowledge proofs and “shielded” transactions to obscure transaction details. Its recent price surge and adoption of privacy technology have made it more appealing as a strategic investment.
Q3: Why did ZEC become the second-largest holding in Hayes’ portfolio?
Hayes cited ZEC’s rapid price appreciation, increased liquidity and meaningful utility (via shielded transactions) as reasons for the token’s upgraded portfolio status behind only Bitcoin.
Q4: Does this imply Bitcoin is losing favour?
Not necessarily. Bitcoin remains the largest holding in Hayes’ portfolio; ZEC’s elevation reflects its relative growth and liquidity rather than a de-emphasis on Bitcoin.
Q5: What risks should investors consider regarding Zcash?
Investors should consider regulatory risk (privacy coins often face scrutiny), adoption risk (utility of shielded transactions), volatility risk (large holdings in altcoins can be more volatile than top-cap coins) and liquidity risk.
Q6: Does this mean ZEC will rise to $10,000?
While Hayes mentioned the possibility of ZEC reaching USD 10,000, such targets are speculative and depend on multiple factors including market conditions, adoption, regulation and broader crypto cycles.
