Zcash ETF Fueling Surge Past $1,000 Amid Miner Profitability Squeeze
Zcash's native ZEC token surged past $1,000 for the first time since its listing on exchanges in late 2016, driven by a surge in inflows into Grayscale's recently launched exchange-traded fund.
The price increase follows the August 25 launch of the Zcash ETF, which trades on NYSE Arca under the ticker (ZCSH). The fund has recorded approximately $34.4 million in net inflows since its debut, with a strong day coming on September 2 when it attracted $12.6 million.
Grayscale's data shows that ZCSH has experienced significant investor interest, but this growing demand has led to increased competition for miners.
Zcash's computing power, known as solrate, climbed from around 25 GSol/s in late August to briefly exceed 30 GSol/s. However, this additional competition has squeezed overall miner profitability.