Zcash rises to new highs on first European ETP, but erases gains as oil prices and rate hike bets bite

Grayscale's Zcash fund ($ZCSH) has reached $1 billion in assets under management, highlighting growing investor interest in privacy-focused cryptocurrencies. The milestone may attract more institutional investors to Zcash, according to the company. Zcash is a privacy-focused cryptocurrency, and Grayscale aims to provide exposure to it through the fund.

Zcash (ZEC) and Monero (XMR) led a 205% surge in privacy coin market cap to $36.51B in five months, per Glassnode and CoinGecko. ZEC's market cap rose $20.27B, while XMR reached $4.33B. Grayscale's ZCSH ETF and SEC's closure of Zcash investigation boosted confidence, though critics like F2Pool's Chun Wang cite protocol weaknesses.

Zcash (ZEC) surpassed $1,600, partly due to the launch of 21Shares' Zcash ETP in Europe, though the rally began earlier. The ETP, trading as ZCASH, allows investors exposure to ZEC without direct ownership. Zcash's price volatility continued, with on-chain activity also increasing, including transfer volume and shielded transactions.

Privacy coins, led by Zcash (ZEC) and Monero (XMR), surged 205% in 5 months, adding $24.54B to their market cap. ZEC's market cap grew by $20.27B, while XMR's increased by $4.33B. The rise is attributed to increased blockchain surveillance and regulatory developments, including the SEC's closure of its Zcash investigation and the launch of the first U.S.-listed spot ETF for a privacy coin, the ZCSH ETF.

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.

21Shares launched physically backed ETPs tracking Zcash (ZEC) and ether.fi (ETHFI) on Euronext Paris and Amsterdam. The Zcash ETP (ticker ZCASH) is the first of its kind in Europe, while the ether.fi ETP (ticker ETHFI) tracks the governance and utility token of the liquid restaking protocol. Both ETPs are physically backed, charge a 2.5% annual fee, and trade in euros and U.S. dollars.