Zcash ETF Surpasses $1B AUM, But Fresh Inflows Tell a Different Story

Grayscale's Zcash ETF (ZCSH) has hit $1 billion in assets under management, but the story is not as straightforward as it seems. On September 24th, the fund surpassed this milestone, but only $306.12 million of new money was invested into the fund.

This means that less than one-third of its current value came from fresh investor inflows. The remaining amount comes from Zcash's (ZEC) sharp price hike and the fund's existing holdings inherited from the Grayscale Zcash Trust, which converted to the ETF structure on August 25th.

ZEC's price has roughly doubled since the ETF began trading, increasing the dollar value of the ZEC the fund already owned. This, in turn, pushed its AUM higher without requiring equivalent new purchases. At press time, ZEC was trading at $1,533 after a 92% hike in the past 30 days.

The broader crypto ETF market showed positive investor sentiment during the week ending on September 24th. Bitcoin (BTC) and Ethereum (ETH) ETFs attracted significant capital, with BTC ETFs recording $2.25 billion in inflows and ETH ETFs following with $602.94 million.