Grayscale files 3-for-1 split for Zcash ETF ZCSH

Grayscale's ZCSH Zcash ETF filed with the U.S. Securities and Exchange Commission on Friday for a 3-for-1 forward share split. Shareholders of record at the close of trading on Sept. 28 will receive two additional shares for every share they hold. The new shares will be distributed after market close on Sept. 29, and split-adjusted trading will begin before market open on Sept. 30 under the same ZCSH ticker and CUSIP number. Grayscale said the split is expected to reduce the fund's price per share while proportionally increasing the number of shares outstanding. The fund also said its net asset value per share is expected to be about one-third of the pre-split value. The split does not change the total value of a shareholder's investment. Grayscale gave an example in which 10 shares worth $300 each become 30 shares worth $100 each, leaving the total value at $3,000. The filing follows a sharp rise in Zcash, which reached an intraday high of $1,521 on Friday, a level The Block called a new effective all-time high for the privacy coin. The article says ZEC has risen more than 2,800% in the past year, making the ETF's per-share price harder for smaller investors to access through brokers that do not offer fractional stock purchases. ZCSH has attracted more than $233 million since it began trading on Aug. 25, including $46.6 million in one day during the reported week and $112 million on Sept. 8. Its net assets were about $890 million as of Sept. 17. ZCSH is described as the world's first spot exchange-traded fund to hold ZEC directly. It was converted from Grayscale's Zcash Trust, which held about $313 million in ZEC when the ETF began trading on NYSE Arca. Zcash allows users to make transactions public or hidden through zk-SNARK cryptography, and its supply is capped at 21 million coins. The article says the ETF gives brokerage-account holders access to exposure to the privacy coin without requiring a crypto wallet. It contrasts Zcash with Monero, ticker XMR, which it says has been banned by major exchanges after pressure from law enforcement agencies. Grayscale previously carried out a 9-for-1 split of its Ethereum Trust in December 2020 after ETH's rise increased the trust's per-share price.