Zcash ETF Reaches $463M in Assets as ZEC Nears $1,200 Mark

Zcash (ZEC) is trading near $1,185, climbing 11% in the last 24 hours. Assets under management for Grayscale's Zcash ETF (ZCSH) stood at $463.2 million as of Sept. 4.

The fund transitioned from Grayscale's Zcash Trust when it started trading on NYSE Arca on Aug. 25. By market capitalization, ZEC now ranks among the top ten cryptocurrencies.

ZCSH Assets Mirror ZEC's Surge

ZCSH shares settled at $83.77 on Sept. 4, a daily gain of 7.62%. Later that evening, shares dipped to $82.20 during after-hours trading.

The net asset value per share for the fund was $83.48. That figure falls within a 52-week span of $3.54 to $84.23.

According to Grayscale's figures, daily trading volume reached 804,728 shares. The ETF's year-to-date performance hit 166.44%, as reported by Yahoo Finance.

As of Sept. 4, the fund held 444,608 ZEC tokens. Grayscale noted that shares outstanding totaled 5.55 million.

On Aug. 25, Grayscale converted its Zcash Trust — operational since 2017 — into the ZCSH exchange-traded fund.

At the time of conversion, Grayscale referenced around $260 million in assets. ZCSH became the first spot ETF listed in the U.S. for a privacy-oriented token.

For regular investors, ZCSH provides ZEC exposure without needing a crypto wallet or exchange account. That accessibility is a key factor behind the rapid inflow growth since the launch.

Rising Demand for AI-Safe Coins

Steve Vanourny, Grayscale's head of index, tied the launch to growing interest in financial privacy.

"As AI reshapes how financial activity can be monitored, we believe demand for genuine financial privacy will only grow."

Steve Vanourny, Grayscale's head of index

ZEC's uptrend started before the ETF launch, when it reached an eight-year high in August.

The surge has driven Zcash's market capitalization above $20 billion, based on BeInCrypto data.

The token is still well below its 2016 all-time peak of $3,191.93. That suggests potential for further appreciation if inflows persist.

Investors still face the question of whether ETF inflows can keep up with ZEC's price volatility.