Grayscale has announced a 3-for-1 forward split for its Zcash ETF (ZCSH), the first exchange-traded fund in the United States dedicated to tracking a privacy coin. The move will triple the number of shares held by each investor, while keeping the total value of their holdings unchanged.
Details of the ZCSH share split
Grayscale stated that shareholders who own ZCSH at the close of business on September 28 will receive two additional shares for each existing share. The distribution of new shares will take place after markets close on September 29. Trading of the post-split shares will begin prior to the market open on September 30.
This action mirrors common corporate practices aimed at boosting liquidity and accessibility, especially after strong investor interest in the newly listed ETF. Grayscale’s ZCSH began trading on NYSE Arca under the ZCSH ticker on August 25, following the conversion of its long-running Zcash Trust.
Coinbase Custody serves as the custodian for the fund’s underlying Zcash coins. ZCSH charges a 2.5% annual management fee, which is about ten times higher than the fee for a typical spot Bitcoin ETF.
Fund inflows and holdings
After launching as an ETF, Grayscale reported that ZCSH assets under management rose from roughly $260 million at listing to more than $500 million in early September. According to an analysis by analyst Austin Liu published on September 17, most assets in ZCSH originated from prior holdings in the trust, with approximately $70 million in new external inflows and a $100 million allocation made by DCG International Investments, a subsidiary of Grayscale’s parent, Digital Currency Group.
By September, the ETF held over 550,000 ZEC, representing nearly 3% of the total supply of Zcash – a cryptocurrency known for its privacy features and transaction flexibility.
Grayscale plans to increase each ZCSH holder’s share count by issuing two additional shares for each existing share, with no impact on the proportional ownership or total value of their holdings.
The structure and security of ZCSH
Zcash offers users the option of conducting either transparent or shielded transactions. Transparent addresses work similarly to Bitcoin, revealing transaction details, while shielded addresses obscure the sender, receiver, and transaction amount.
Despite Zcash’s privacy benefits, ZCSH holds its coins in transparent addresses at Coinbase Custody. This approach ensures all fund assets can be audited on the public blockchain, offering greater transparency to market participants.
Mini dictionary: Coinbase Custody, an institutional-grade digital asset custody platform, secures and manages cryptocurrencies on behalf of funds, institutions, and companies with a focus on compliance and storage security.
ZEC price milestones
One year ago, ZEC, the native asset of the Zcash network, was trading around $50. Following significant ETF inflows, ZEC surpassed $1,000 on September 4. As of this week, its price has climbed to nearly $1,500 after gaining about 20% in a single day.
| Date | ZEC Price (USD) | Key Event |
|---|---|---|
| 1 year ago | $50 | Pre-ETF launch |
| September 4 | $1,000 | ZCSH ETF inflows pick up |
| This week | $1,500 | 20% surge following ETF attention |
The ZCSH fund has experienced a surge in assets and investor interest since its ETF debut, sharply increasing both the number of shares outstanding and its exposure to the Zcash market.
