ZEC rally lifts Grayscale’s Zcash ETF to within $85 million of $1 billion

Grayscale’s Zcash ETF, which trades as ZCSH on NYSE Arca, has accumulated $914.53 million in net assets and $270.95 million in cumulative net inflows, according to SoSoValue data. The fund began trading on Aug. 25, and its assets have increased by more than $400 million since Sept. 8, when Grayscale said the fund had passed $500 million two weeks after listing. Zcash has roughly doubled in value since the ETF began trading, leaving ZCSH about $85 million short of $1 billion in assets. CryptoSlate data showed ZEC trading around $1,540 on Sept. 19. CoinGlass data showed ZEC futures open interest reaching an all-time high of about $3.5 billion this week. Futures trading volume exceeded $10 billion for the first time since early June. Higher open interest does not establish that positioning is uniformly bullish, but record exposure and elevated turnover increase the market’s sensitivity to abrupt reversals and liquidation cascades. Zcash holders backed retaining the network’s Bitcoin-style halving schedule instead of moving to a smoother issuance system. About 2.4 million ZEC participated in the advisory vote, representing roughly two-thirds of eligible supply. Holders also favored delaying the reissuance of tokens accumulated through the Network Sustainability Mechanism until 2031. The mechanism removes a portion of transaction fees from circulation before those tokens can eventually return through future block rewards, while Zcash’s maximum supply remains 21 million. Holders separately backed reducing block times to 25 seconds from 75 seconds under the planned NU7 upgrade. They also supported advancing NU7 as quickly as possible while excluding features that do not meet a Sept. 30 implementation-readiness deadline. The decisions remain advisory and require technical implementation, so developers will determine which components ultimately enter the upgrade. Because ZCSH holds ZEC, a rise in the token’s value increases the value of assets already inside the fund alongside new investor creations. This helps explain why the fund’s asset base is more than three times its cumulative net inflows. Grayscale announced a 3-for-1 forward split on Sept. 18. The split will triple the number of ZCSH shares outstanding and reduce the net asset value represented by each share to roughly one-third of its pre-split level. Shareholders of record at the close of trading on Sept. 28 will receive two additional shares for every share held. The distribution is scheduled after the market closes on Sept. 29, and split-adjusted trading is expected to begin before the market opens on Sept. 30. The split alone will not change the aggregate value of an investor’s position. Grayscale has not said that the move is intended to increase demand or liquidity, and the fund will retain its ZCSH ticker and existing CUSIP. ZCSH could reach $1 billion before Sept. 30 if inflows continue and ZEC holds its recent gains. A sharp reversal in ZEC could quickly reduce the value of the token backing the fund, making further asset growth dependent on investor demand and the durability of the rally.