Zcash ETF Sees Net Assets Surpass $463 Million as ZEC Hits Near-$1,200

The Zcash ETF, launched by Grayscale on August 25, has seen significant growth in its net assets, reaching $463.2 million as of September 4. This surge is largely due to the increasing value of the underlying asset, ZEC, which traded near $1,185, up 11% in the past 24 hours.

As a result, Zcash's market capitalization has surpassed $20 billion, making it one of the top ten largest cryptocurrencies by market cap. The ETF, known as ZCSH, saw its shares rise 7.62% on September 4, closing at $83.77. However, in after-hours trading, shares slipped to $82.20.

The fund's net asset value per share stood at $83.48, which is within the 52-week range of $3.54 to $84.23. The ETF has driven rapid inflows and easier crypto adoption for ZEC, producing a year-to-date return of 166.44%. However, continued price volatility and uncertain sustained inflows present downside risks for future gains.

According to Grayscale's head of index, Steve Vanourny, the launch of the ETF is linked to rising demand for financial privacy, which he believes will only grow as AI reshapes how financial activity can be monitored. ZEC's rally began before the ETF launch, when it hit an eight-year high in August.