The rise in Zcash price has also rapidly increased the size of Grayscale’s $ZEC-focused exchange-traded product.
Grayscale Zcash ETF, ZCSH, has approached the $1 billion mark in assets under management. This increase in fund size is driven by both new investor inflows and a rise in the market value of $ZEC tokens held in the fund.
ZCSH, the first exchange-traded product in the US to provide direct exposure to the $ZEC price, began trading on the NYSE Arca on August 25. The fund’s assets surpassed the $500 million mark in early September.
However, it should not be assumed that the entire increase in fund size is due to cash inflows. The rise in the $ZEC price also increases the dollar-denominated value of existing assets. Net inflow data also needs to be monitored to assess the fund’s true investor demand.
$ZEC recently entered a rapid growth cycle and distinguished itself from other altcoins with its privacy-focused structure.
*This is not investment advice.