$1B Grayscale Zcash ETF Boosted by Token Price Surge

Grayscale's Zcash ETF has reached $1 billion in assets, but its flow data reveals that most of it isn't new money. The fund, which started trading on NYSE Arca on August 25, saw its value more than double to $500 million within two weeks.

However, the $1 billion figure is misleading, as it includes years-old assets and the recent price increase of ZEC, which has nearly doubled in value since the ETF's debut. According to Sosovalue data, as of September 24, new money accounted for less than 30% of the fund's value.

The rest comes from two sources: Grayscale's 2017 Zcash Trust, which was renamed and relisted on NYSE Arca, and the appreciation in value of ZEC. The token is currently trading around $1,540, compared to its price when the ETF debuted.

Even the inflow figure needs an asterisk, as DCG International Investments acquired about $100 million of ZCSH shares 'in exchange for 85,705.32563297 ZEC tokens' in early September. This deal accounts for a significant portion of the fund's growth.