Zcash Soars to New Heights, Reaches Record $1,254.01 as Grayscale ETF Drives Rally

Zcash has reached new heights, trading at $1,223.52 and up 47.05% on the week. This surge comes after reaching a record $1,254.01 on September 6, clearing $1,000 for the first time since 2016. The token's market capitalization is now over $20 billion, surpassing Dogecoin to become the tenth-largest cryptocurrency.

The catalyst behind Zcash's rise is largely attributed to Grayscale's spot Zcash ETF, listed on NYSE Arca on August 25 under ZCSH. This fund has gathered approximately $463 million in assets in just two weeks, with over $45 million coming in a single recent week. The ETF's filings and holdings are publicly searchable through SEC EDGAR.

Short liquidations have also played a significant role, with around $45.32 million in ZEC short liquidations on a single day, the largest of any asset. As price broke $1,000, an additional $34.5 million in shorts was force-closed. This has led to a short squeeze, forcing buying from traders whose bearish positions are automatically closed by an exchange.

The growth of Zcash's shielded pool has also contributed to the token's success, with holdings reaching 4.85 million ZEC, the highest since June. However, the rally may be overextended, as ZEC has gained roughly 2,500% across 2026 and around 145% in the past month alone.

Regulation remains a significant risk, particularly the European Union's anti-money-laundering framework set to restrict anonymity-enhancing tokens at regulated providers from July 1, 2027. A US-listed ETF does not bind European regulators, and Zcash's optional-transparency design is a mitigation rather than an exemption.