Grayscale's $1 Billion Zcash ETF Surpasses Expectations Despite Modest Inflows

Grayscale's Zcash ETF has reached an impressive $1 billion in net assets, but surprisingly, the cumulative net inflows have accounted for less than 30% of that total. The fund recorded a respectable $306.12 million in net inflows.

The asset base also reflects Zcash holdings carried over from Grayscale Zcash Trust, which was established in October 2017 and already held ZEC when it became the ETF.

ZCSH began trading on NYSE Arca on August 25 and surpassed $500 million in assets within two weeks. This is likely due to ZEC's price roughly doubling since the ETF began trading.

On September 8, DCG International Investments exchanged 85,705.32563297 ZEC for about $100 million in ZCSH shares. Excluding that noncash transaction, outside capital added to the fund was about $200 million.