Zcash ETF Seeks $1 Billion Milestone Amid Record-Breaking Rally
Grayscale's Zcash ETF is rapidly accumulating assets, closing in on $1 billion less than a month after its Wall Street debut. The fund has seen a massive influx of investor demand, with net assets reaching $914.53 million and cumulative net inflows totaling $270.95 million. This surge has coincided with the price of Zcash (ZEC) roughly doubling since August 25.
The acceleration in asset growth is attributed to ZEC's significant rally, which has pushed derivatives activity to records. According to data from CryptoSlate, ZEC traded at around $1,540 on September 19, nearly twice its level when the fund began trading on NYSE Arca. This has led to a substantial increase in futures open interest, reaching an all-time high of approximately $3.5 billion this week.
The price advance has also coincided with key decisions regarding Zcash's monetary policy and next network upgrade. In an advisory vote, holders supported retaining the network's Bitcoin-style halving schedule and delaying the reissuance of tokens accumulated through the Network Sustainability Mechanism until 2031. Additionally, they favored reducing block times to 25 seconds from 75 seconds under the planned NU7 upgrade.
Grayscale has announced a 3-for-1 forward split on September 18, which will triple the number of ZCSH shares outstanding and reduce the net asset value represented by each share. This change is expected to make smaller whole-share purchases easier, particularly after the sharp rise in the value of the underlying asset.