Digital Currency Group CEO Barry Silbert believes a noticeable shift could be coming inside the crypto market. Speaking at Bitcoin Investor Week in New York, Silbert said that 5% to 10% of Bitcoin’s capital may eventually move into privacy-focused cryptocurrencies such as Zcash.
He remains bullish on Bitcoin and still sees it as a core portfolio holding. But he made it clear that Bitcoin’s size limits its explosive upside. According to Silbert, Bitcoin is unlikely to deliver 500x returns unless there is a complete collapse of the U.S. dollar. Smaller projects with focused use cases, like Zcash and even AI-driven network Bittensor, offer much higher return potential because they are earlier in their growth cycles.
Why Privacy Is Gaining Attention
Silbert’s argument revolves around financial privacy. He acknowledged that Bitcoin’s old narrative as anonymous digital cash no longer holds up. With blockchain analytics firms such as Chainalysis and Elliptic tracking transactions, Bitcoin is now highly transparent.
As more institutional capital enters crypto, regulatory oversight and compliance standards are increasing. That shift is creating a new dynamic. The more regulated and monitored the space becomes, the more valuable privacy technology may appear.
Silbert does not believe Bitcoin will meaningfully integrate strong privacy features. Because of that, he expects capital to flow toward networks that are designed with privacy at their core, especially those using zero-knowledge technology to protect transaction data.
DCG’s Position Reflects the Thesis
Silbert’s comments carry weight because of DCG’s history in crypto. Grayscale, a DCG subsidiary, launched the first institutional Bitcoin investment vehicle in 2013. That product later became one of the most actively traded spot Bitcoin ETFs.
Grayscale also runs the Grayscale Zcash Trust, launched in 2017, and is working toward an ETF conversion. DCG has previously backed other privacy-focused projects as well. Silbert even suggested that Zcash could act as a long-term hedge against potential quantum computing risks to Bitcoin, though he does not see that threat as immediate.
Privacy Chain or Privacy Layer
Not everyone agrees that standalone privacy coins will dominate. Crypto user neural_gin argued that privacy is becoming a premium feature as regulations tighten, but questioned whether it needs its own blockchain.
He suggested that zero-knowledge proofs integrated into major networks like Ethereum or Solana could compete directly with projects like Zcash. In his view, privacy should be a feature users can switch on when needed rather than something tied to a separate token.
If even a small portion of Bitcoin capital rotates, the privacy sector could see renewed momentum. The real debate now is where that value ultimately lands.
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