Grayscale’s Zcash ETF Has Taken In $306 Million Since August, Valued Near $1 Billion
Grayscale's Zcash ETF is flirting with a $1 billion valuation, but fresh investor money dried up three days ago while heavy trading continues. Whether the fund can hold that milestone depends entirely on a cryptocurrency few predicted would matter this…
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Grayscale’s Zcash ETF, launched on August 25, 2026, has attracted $306 million in new investments. However, the fund’s total assets have ballooned to around $996 million as of September 25, according to SoSoValue. This means that less than a third of the fund’s value comes from fresh capital. Most of its value comes from Zcash (CRYPTO:ZEC) coins the fund already held, combined with a significant price increase.
Interestingly, there were no net inflows on September 23, 24, and 25. Investors now need to consider whether the price can sustain the fund’s near $1 billion value without further contributions.
Grayscale’s Zcash ETF Has Taken In $306 Million Since Its August 25 Launch
The fund, trading under the ticker ZCSH, is notable for being the first U.S. ETF focused on a privacy coin. It recorded its first daily influx of $4.6 million on August 27. The largest contribution came on September 8, when investors added a hefty $112 million while Zcash was valued at $1,178.
Subsequent days saw smaller bursts of investment, including $2.4 million on September 21 and $33 million on September 22, when Zcash closed at $1,630. However, daily inflows plummeted to zero for three consecutive days, leaving the running total at $306 million despite Zcash hitting a weekly high of $1,677 on September 23.
Old Trust Holdings and a Rising Zcash Price Built Most of the $1 Billion
Grayscale didn’t build this ETF from scratch. It transitioned its Grayscale Zcash Trust, which had held ZEC since October 2017, into the ETF. This meant the fund already held a substantial amount of Zcash at launch, which appreciated as Zcash surged from around $810 on August 27 to $1,532 on September 26.
If all $306 million had been invested when Zcash was priced at $810, those coins would only be valued at about $580 million at $1,532. Therefore, around $400 million of the ETF’s total valuation is attributed to the ZEC that the trust had previously owned, whose rising price contributed significantly to the fund’s value.
Despite heavy trading, no new money has flowed into the fund since September 22. On September 25 alone, investors exchanged $77 million worth of ZCSH shares on a day that saw no net inflow, highlighting that investors were simply swapping existing shares rather than adding new capital.
Ledger’s Zcash Update and a Shielded Bitcoin Paper Brought No New ETF Money
On September 23, Ledger announced support for native shielded Zcash transactions in its desktop wallet. This feature allows users to hold ZEC in a private balance, keeping transaction details hidden. Meanwhile, research surfaced a paper exploring the potential for shielded Bitcoin payments using Zcash’s technology, which could enhance Zcash’s appeal among developers, though it did not result in new investments for the ETF. Additionally, one of Zcash’s co-founders has set a future target price of $5,000, well above its current valuation of $1,532 on September 26.
However, despite these developments, the ETF saw no new inflows on September 23, 24, or 25, starting the same day as the Ledger update launch.
Can the Zcash ETF Hold Near $1 Billion Without New Inflows?
The Zcash ETF’s ability to hold near $1 billion hinges on ZEC’s performance, since most of its value comes from existing assets and price gains rather than new investments. Zcash’s price dipped from $1,599 on September 25 to $1,532 on September 26, and without recent inflows, any decline in ZEC’s price will directly affect the fund’s assets.
So, can the Zcash ETF stay near $1 billion without additional capital? It’s possible if Zcash stays above $1,443, which is its lowest price since September 21, marking a 6% drop from the September 26 valuation. A daily inflow above the previous $33 million recorded on September 22 would signal new investment interest, while consistent trading below $1,443 with no further inflows might indicate the price can’t support the fund at current levels.
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Sam Daodu is a crypto analyst and the editor of 24/7 Wall St.'s Crypto Desk, where he covers Bitcoin, XRP, Ethereum, Solana and the altcoins investors search for most. His work focuses on price levels, spot ETF flows, on-chain data and the regulatory decisions that move crypto markets, written so a first-time buyer and a seasoned trader can both use it.
Sam has written about crypto professionally since 2019 and has published more than 2,000 articles. Before joining 24/7 Wall St., he wrote for crypto media outlets and Web3 companies and ghostwrote for crypto founders and token launches. His analysis is syndicated on Yahoo Finance, MSN and AOL and has been cited by other crypto news sites. He also founded MacLabs Marketing, a content and personal branding agency for crypto founders and executives.
When he isn't reading charts, Sam is usually at the gym or watching One Piece, a series he maintains has better tokenomics than most altcoins.
