Zcash ETF ZCSH nears $1B as ZEC rally boosts demand

Grayscale's Zcash ETF (ZCSH) will undergo a 3-for-1 share split, with shareholders receiving additional shares post-market on Sept. 29. The ETF has seen $233M in inflows since its Aug. 25 launch, reaching $890M in net assets. The split aims to lower share price, making it more accessible. Grayscale also filed for a Zcash futures ETF, and ZEC leverage remains high, affecting price sensitivity.

Grayscale filed with the SEC for a new ETF, ZCSH High Income ETF, designed to generate biweekly income distributions tied to Zcash options without holding the cryptocurrency. The fund aims to deliver current income and potential price appreciation by trading options on Grayscale's existing Zcash spot ETF (ticker ZCSH). The registration statement is pending effectiveness, with a potential launch around early December 2026.

Grayscale's Zcash ETF (ZCSH) has raised $306M since its August launch, with total assets nearing $1B. Most of the value comes from existing Zcash holdings and price appreciation, not new investments. Zcash's price has surged from $810 to $1,532, but the fund saw no inflows from Sept 23-25.

Grayscale filed for a Zcash ETF (ZCSH) that would pay shareholders biweekly through option premiums, not direct coin ownership. The filing, submitted to the SEC on September 25, could take effect in early December. The proposed ETF, ZCSH High Income, will not hold Zcash (ZEC) but will trade options tied to Grayscale's existing Zcash ETF. The fund aims to generate income by selling short-dated call options, but this strategy caps upside gains and exposes the fund to market risks.

Grayscale's Zcash ETF (ZCSH) reached $1B in assets under management, though only $306M came from new inflows. The rest was due to Zcash's price surge and pre-existing holdings from the Grayscale Zcash Trust. ZEC's price has doubled since the ETF's launch, contributing to the AUM growth. Meanwhile, broader crypto ETFs saw significant inflows, led by Bitcoin and Ethereum.

The Zcash ETF (NYSEMKT: ZCSH), which holds the cryptocurrency Zcash (CRYPTO: ZEC), reported assets over $915 million by Sept. 22, up from $500 million on Sept. 8. The ETF holds 3.5% of ZEC's circulating supply, with net inflows of $233 million. Zcash's price has risen 203% this year. The ETF's growth signals investor interest in Zcash as an asset.