Grayscale's Zcash ETF Soars Past $500 Million with DCG's $100 Million Injection

Grayscale's Zcash ETF (ZCSH) reported over $500 million in assets as of September 8, just two weeks after listing on NYSE Arca. However, a closer look at the fund's investors reveals that the single largest contributor to this total was not an outside investor, but DCG International Investments, an affiliate of Grayscale's own sponsor.

DCG purchased $100 million worth of ZCSH shares on September 8 by exchanging 85,705.33 ZEC for stock. This purchase is notable because it outweighs the combined total of more than $70 million invested by every other investor in the fund since its launch. In fact, DCG's single trade accounts for roughly a fifth of the fund's total reported assets.

This development was not entirely unexpected, as an SEC filing from August 20 showed that DCG was considering a contribution of up to 200,000 ZEC, worth approximately $110 million at the time. While the actual contribution was lower than this ceiling, it still represents a significant investment in the fund.

It's worth noting that DCG has its own reasons for wanting demand for ZEC to appear strong. The company's Zcash-mining subsidiary, Fortitude Mining Holdings, has posted losses in every period since 2024, including $14.3 million in 2024 and $12.6 million in 2025.