Grayscale announced that its Zcash exchange-traded fund surpassed $500 million in assets under management just two weeks after listing, holding more than 550,000 ZEC. However, a regulatory Form 8-K filing indicates that $100 million of that total originated from within the fund's corporate family.
The fund, traded under the ticker ZCSH on NYSE Arca, listed on August 25 and crossed the half-billion-dollar mark by September 8. According to the filing, DCG International Investments Ltd.—a wholly owned, indirect subsidiary of Digital Currency Group, Inc. and an affiliate of the fund's sponsor—acquired roughly $100 million of ZCSH shares by exchanging 85,705.32563297 ZEC through an authorized participant.
Grayscale noted that cumulative inflows from outside sources totaled just over $70 million during the initial two-week post-launch window, meaning the affiliate contribution exceeded open-market inflows combined. While an in-kind swap of ZEC for shares is a standard creation mechanism, market analysts point out that the $500 million milestone reflects the fund's scale rather than purely external investor demand.
The asset milestone coincides with significant market movement for Zcash. ZEC traded above $1,200, reaching an intraday peak near $1,249 to hit its highest level since the fourth quarter of 2016. This rally occurred while major digital assets like bitcoin stalled near the $79,000 range ahead of economic data releases and Federal Open Market Committee meetings. Industry figures including Arthur Hayes, Bitwise CIO Matt Hougan, and Alliance DAO’s Qiao Wang have recently endorsed ZEC, while Grayscale's research points to rising demand for privacy assets driven by concerns over financial surveillance.
