Grayscale’s Zcash ETF has grown to more than $500 million in assets under management less than two weeks after launching on NYSE Arca, according to a Sept. 8 announcement cited in market coverage. The fund, trading under the ticker ZCSH, began trading on Aug. 25 and now holds more than 550,000 ZEC.

The same day, Grayscale also introduced options on ZCSH on NYSE Arca, expanding the ways investors can take positions in or hedge exposure to Zcash through exchange-traded instruments rather than holding the token directly. Grayscale says ZCSH remains the only exchange-traded product offering direct spot exposure to ZEC.

How the fund reached the milestone

The reported rise above $500 million includes a sizable contribution arranged ahead of launch. About $100 million of the growth came from DCG International Investments, which contributed 85,705 ZEC in exchange for ZCSH shares under a structure disclosed before trading began.

According to Grayscale Head of Index Steve Vanourny, the balance of the increase included more than $70 million in independent inflows since launch. Together, those additions pushed the product past the half-billion-dollar mark within roughly two weeks of listing.

ZEC price remains elevated after a rapid climb

The ETF update arrived as Zcash traded near $1,236.27, down 0.65% on the day after reaching an intraday high of $1,256.57. The move marked a second straight red session, but it followed a sharp rally from about $800 to above $1,250 in under two weeks.

That advance carried ZEC beyond the upper edge of an ascending channel that had contained price action since June. The token was also trading above all key exponential moving averages tracked in the source analysis, with the 20-day EMA at $963.29 identified as the nearest notable support, followed by the 50-day EMA at $766.30 and the 100-day EMA at $639.28.

Derivatives data shows heavy activity and mixed positioning

Trading in ZEC derivatives also accelerated. Twenty-four-hour derivatives volume rose 20.17% to $8.49 billion, while open interest increased 1.64% to $2.62 billion, suggesting much of the surge came from active trading rather than a major build-up of new positions.

Liquidation data showed shorts absorbing larger losses over the full day, with $7.76 million liquidated versus $5.56 million for longs. Even so, account-level positioning remained skewed to the short side in the data cited: Binance’s long/short ratio stood at 0.46 and OKX’s at 0.32. In the most recent hour covered, that dynamic briefly reversed as the pullback caught late buyers, with longs losing $118,590 against $19,890 for shorts.

Key levels traders are watching next

The source analysis kept a bullish short-term view as long as ZEC stays above $963.29, the 20-day EMA. On that reading, holding support near $1,205 and reclaiming the day’s high around $1,256.57 could leave room for a move toward $1,300, with $1,500 presented as a further upside target rather than a confirmed outcome.

On the downside, losing $1,205 would increase the risk of a deeper pullback. A close below the 20-day EMA at $963.29 was identified as the first stronger technical sign that the recent parabolic move may be fading, with $900 cited as the next lower support area.

Source: Coin Edition