Grayscale's Zcash ETF Surpasses $1B in Assets Under Management

Grayscale's Zcash ETF has reached $1 billion in assets under management just one month after its listing on NYSE Arca. The fund surpassed $500 million in less than two weeks, a rapid pace even by ETF market standards. However, not all of this growth can be attributed to new money; the majority is due to the rising price of Zcash (ZEC). In fact, according to data from Sosovalue, cumulative net flows as of September 24 were only $306.12 million, accounting for less than 30% of the total.

The remaining $700 million can be attributed to two factors: Grayscale's decision to rename its existing Grayscale Zcash Trust, which has been accumulating ZEC since October 2017, and the fact that the token was trading at around $1,540 at the time of conversion. This means that the fund's value was effectively doubled by the increase in price.

Grayscale's parent company, DCG International Investments, also contributed to the growth through an in-kind swap of 85,705 ZEC, which added approximately $100 million to the inflows. Excluding this transaction, genuine external capital falls to around $200 million.