Grayscale's Zcash ETF Surges 28% to Hold Nearly 600,000 ZEC

Grayscale's Zcash ETF has seen significant growth since its launch on August 25, 2026, as its holdings of ZEC increased by 28.4% to approximately 596,269 coins.

This represents a substantial portion of the circulating supply of ZEC, accounting for roughly 3.52%. The fund's assets under management have nearly tripled from its initial $304 million, with estimated inflows reaching over $70 million in its first two weeks of trading and an additional $60.5 million weekly contributions thereafter.

The entire growth was driven by in-kind creations, where authorized participants deposited actual ZEC into the fund in exchange for newly issued ETF shares. The single largest contributor was DCG International Investments Ltd., a parent company of Grayscale, which deposited approximately 85,705 ZEC on September 8, valued at around $100 million.

The fund's growth and market dynamics have raised questions about supply constraints, given that nearly 3.52% of the circulating supply is locked inside this single fund. The optional privacy feature of Zcash may help mitigate these concerns, as transactions can be either transparent or shielded using zero-knowledge proofs.