Zcash ETF Surpasses $500M in Assets After NYSE Arca Debut
Zcash's exchange-traded fund (ETF), ZCSH, has surpassed $500 million in assets under management (AUM) just two weeks after its debut on NYSE Arca. Launched on August 25th, the ETF provides investors with spot exposure to ZEC, making it the only exchange-traded product offering this feature.
The fund's rapid growth is attributed to over $70 million in inflows and a significant investment of roughly $100 million from DCG International Investments Ltd. This contribution, which included 85,705 ZEC, resulted in shares being issued to the investor.
Zcash's high volatility, averaging around 140% over the past year, supports higher option premiums. According to Grayscale Head of Research Zach Pandl, this volatility is a key driver behind the fund's success. A hypothetical covered-call strategy for Zcash implies an annualized yield of approximately 70%, compared to around 30% for Bitcoin.