Grayscale says its ZCSH Zcash exchange-traded fund has crossed $1 billion in net assets about a month after listing. The milestone is notable, but the fund’s own flow figures indicate that most of the increase did not come from new outside money alone.
By Sept. 24, ZCSH had recorded $306.12 million in net inflows. That total includes a roughly $100 million in-kind transfer from Digital Currency Group on Sept. 8, meaning the amount of fresh external cash implied by the data is closer to $200 million rather than the full $1 billion reflected in assets under management.
A large asset base built on an older trust
ZCSH is not a newly created pool of assets from scratch. The ETF is the renamed Grayscale Zcash Trust, which was originally formed in October 2017 and had already accumulated ZEC over several years before the fund’s conversion and listing.
That structure helps explain why assets under management could reach $1 billion so quickly. A significant portion of the fund’s holdings was already inside the trust before the ETF began trading in its current form.
Price appreciation did much of the work
Grayscale’s figures suggest ZEC’s market performance was a major driver of the headline asset total. The token was trading around $1,540, roughly double the level seen when the ETF debuted, according to the source article.
As the value of the underlying ZEC rose, the value of the ETF’s holdings increased as well. In other words, the move to $1 billion in net assets reflects not only investor inflows but also the appreciation of crypto already held by the fund.
How much was new money
Net inflows stood at $306.12 million as of Sept. 24. However, that number includes an in-kind swap by DCG involving 85,705 ZEC on Sept. 8, valued at about $100 million.
Subtracting that internal-style contribution leaves roughly $200 million in fresh outside cash implied by the figures. That does not diminish the fact that new investors have entered the product, but it does put the $1 billion asset headline into clearer context.
Supportive backdrop for ZEC demand
The source article said capital has continued to move toward ZEC through fund inflows and additional investment products. It also pointed to developments such as Europe’s first ZEC product and public comments from industry figures highlighting Zcash’s privacy features and claimed quantum-resistance advantages.
At the same time, the article noted that views on ZEC’s fundamentals are not uniform. Those differing opinions are part of the backdrop as the token’s recent rally feeds into the ETF’s asset growth.
Share split scheduled for Sept. 30
Grayscale’s next confirmed step is a 3-for-1 forward split for ZCSH. The split applies to holders of record on Sept. 28 and is set to take effect before the market opens on Sept. 30.
Under the plan, net asset value per share should fall to about one-third of its previous level while the number of shares outstanding triples. The overall value of each investor’s position is expected to remain unchanged, with the adjustment intended to make the shares easier to access for smaller buyers.
Source: news.bitcoin.com