Zcash continued its sharp advance on Sept. 18, rising nearly 11% on the day and briefly moving above $1,500, according to CoinMarketCap data. The privacy-focused cryptocurrency is now up about 200% over the past month and more than 2,870% from a year earlier.
The move has been linked to several catalysts that emerged in quick succession: the late-August listing of Grayscale’s spot Zcash ETF on NYSE Arca, a strong run of fund inflows, and growing expectations around the network’s next technical upgrade.
ETF launch changed access
The latest leg of the rally began after Grayscale listed its spot Zcash exchange-traded fund, ZCSH, in late August. Since that debut, the fund has posted net inflows for three consecutive weeks and held about $890 million in net assets as of Sept. 18, putting it close to the $900 million mark.
Market participants have largely treated the ETF as a demand shift for Zcash. The product gives investors a way to gain exposure through traditional brokerage accounts rather than crypto exchanges, and it also opens a route for institutional buyers. Some observers have also highlighted the symbolic importance of a privacy coin being wrapped in a regulated financial product.
Public endorsements added momentum
Sentiment around the token strengthened further after comments from Paradigm co-founder Matt Huang. In a post on X dated Sept. 17, Huang described Zcash as “a privacy asset that complements Bitcoin” and said Paradigm has invested in the token.
After those remarks, Zcash rose more than 20% in a single day. The endorsement fed into an emerging market narrative that the asset is not necessarily competing head-on with Bitcoin, but instead is gaining attention for a different use case centered on privacy.
Recent upgrades and NU7 expectations
Supporters of the rally have also pointed to changes inside the Zcash network itself. The Ironwood upgrade, activated on mainnet in late July, improved privacy functions and transaction structure, and it also addressed security concerns that emerged after vulnerabilities in Zcash’s Orchard pool were disclosed in May.
Attention is now shifting to the next planned upgrade, NU7. In a recent ecosystem vote, roughly 99% supported a proposal to reduce block times to 25 seconds from 75 seconds while keeping the current Bitcoin-style halving schedule. The development team plans to launch NU7 on a testnet next month and could bring it to mainnet as early as November.
What supporters say comes next
Some traders and industry figures argue the rally may not be over, though those views remain speculative. Prominent crypto trader Ansem recently said Zcash could trace a path similar to Bitcoin’s 2017 cycle, when Bitcoin rose from about $1,000 to roughly $13,000.
Others frame the case around privacy demand rather than historical price analogies. Grayscale head of research Zach Pandl said the spread of stronger artificial intelligence is also increasing interest in privacy. In his view, Zcash offers an investment expression tied to personal and financial privacy, an area he described as underused and underexplored rather than one in direct competition with Bitcoin.
The next confirmed milestone is the planned NU7 testnet rollout next month, followed by a possible mainnet activation as early as November. Until then, investors will also be watching whether ZCSH can extend its inflow streak after approaching $900 million in net assets.
Source: en.bloomingbit.io