Grayscale’s ZCSH ETF increases Zcash holdings by 28% to 596,269 ZEC

Grayscale’s ZCSH ETF increases Zcash holdings by 28% to 596,269 ZEC

In-kind transfers, not open market purchases, drove the privacy-coin ETF's holdings to nearly 3.5% of all circulating ZEC within weeks of launch

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by Editorial Team

Less than a month after converting its legacy Zcash Trust into a full-blown spot ETF, Grayscale now controls nearly 600,000 ZEC. That’s roughly 3.52% of the entire circulating supply of a coin explicitly designed so nobody could track who holds what.

The fund, trading under ticker ZCSH on NYSE Arca, held 596,268.94 ZEC as of September 18, 2026. That figure represents a 28.4% increase from the holdings it started with when the ETF launched on August 25. The kicker: none of that growth came from Grayscale buying coins on the open market.

How in-kind transfers inflated the fund

The entire 28% jump was driven by in-kind creations, a mechanism where authorized participants deposit actual ZEC into the fund in exchange for newly issued ETF shares.

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The single largest contributor was DCG International Investments Ltd., which deposited approximately 85,705 ZEC on September 8, valued at around $100 million at the time. DCG, of course, is the parent company of Grayscale, making this less of a vote of confidence from the outside and more of a reshuffling within the family.

Still, the numbers are hard to dismiss entirely. ZCSH pulled in over $70 million in inflows during its first two weeks of trading. By mid-September, additional weekly contributions of roughly $60.5 million pushed the fund’s estimated assets under management into the $876 to $914 million range. One particularly active day saw $46.6 million flow in.

The only game in town

ZCSH is the only listed spot exchange-traded product offering direct exposure to ZEC on a US exchange. The fund converted from Grayscale’s existing Zcash Trust, which had an initial AUM of approximately $304 million at launch. In under a month, that figure has nearly tripled.

Coinbase Custody serves as the custodian, and the fund charges a 2.5% expense ratio.

Grayscale also announced a 3-for-1 forward share split scheduled for September 28, 2026. The move would lower the per-share price and theoretically improve accessibility for smaller investors.

Privacy coins and the institutional paradox

Zcash occupies a somewhat more palatable position than its peers because it offers optional privacy. Transactions can be either transparent (similar to Bitcoin) or shielded using zero-knowledge proofs.

For ZEC’s market dynamics, having nearly 3.52% of the circulating supply locked inside a single fund creates a meaningful supply constraint.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
FINANCE
Grayscale’s ZCSH ETF increases Zcash holdings by 28% to 596,269 ZEC
Grayscale’s ZCSH ETF increases Zcash holdings by 28% to 596,269 ZEC

In-kind transfers, not open market purchases, drove the privacy-coin ETF's holdings to nearly 3.5% of all circulating ZEC within weeks of launch

by Editorial Team

Share

Add us on Google

Less than a month after converting its legacy Zcash Trust into a full-blown spot ETF, Grayscale now controls nearly 600,000 ZEC. That’s roughly 3.52% of the entire circulating supply of a coin explicitly designed so nobody could track who holds what.

The fund, trading under ticker ZCSH on NYSE Arca, held 596,268.94 ZEC as of September 18, 2026. That figure represents a 28.4% increase from the holdings it started with when the ETF launched on August 25. The kicker: none of that growth came from Grayscale buying coins on the open market.

How in-kind transfers inflated the fund

The entire 28% jump was driven by in-kind creations, a mechanism where authorized participants deposit actual ZEC into the fund in exchange for newly issued ETF shares.

Advertisement

The single largest contributor was DCG International Investments Ltd., which deposited approximately 85,705 ZEC on September 8, valued at around $100 million at the time. DCG, of course, is the parent company of Grayscale, making this less of a vote of confidence from the outside and more of a reshuffling within the family.

Still, the numbers are hard to dismiss entirely. ZCSH pulled in over $70 million in inflows during its first two weeks of trading. By mid-September, additional weekly contributions of roughly $60.5 million pushed the fund’s estimated assets under management into the $876 to $914 million range. One particularly active day saw $46.6 million flow in.

The only game in town

ZCSH is the only listed spot exchange-traded product offering direct exposure to ZEC on a US exchange. The fund converted from Grayscale’s existing Zcash Trust, which had an initial AUM of approximately $304 million at launch. In under a month, that figure has nearly tripled.

Coinbase Custody serves as the custodian, and the fund charges a 2.5% expense ratio.

Grayscale also announced a 3-for-1 forward share split scheduled for September 28, 2026. The move would lower the per-share price and theoretically improve accessibility for smaller investors.

Privacy coins and the institutional paradox

Zcash occupies a somewhat more palatable position than its peers because it offers optional privacy. Transactions can be either transparent (similar to Bitcoin) or shielded using zero-knowledge proofs.

For ZEC’s market dynamics, having nearly 3.52% of the circulating supply locked inside a single fund creates a meaningful supply constraint.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.