Key highlights:
- Grayscales ZCSH ETF will undergo a 3-for-1 share split on Sept. 30, reducing the per-share price to ~$39.24 from ~$117.72
- ZCSH has accumulated $914.53M in net assets and $11B+ in cumulative trading volume since its Aug. 25 launch, with September inflows of $249.12M already far exceeding Augusts $21.83M total
- ZEC gained 8.3% to $1,568 as investors anticipate the NU7 upgrade targeting the Oct. 6 testnet and Nov. 5 mainnet activation
Grayscale‘s Zcash ETF, ZCSH, is set to undergo a 3-for-1 forward share split on Sept. 30, less than six weeks after beginning trading as inflows pushed the fund’s assets close to $1 billion.
Since beginning trading on August 25, ZCSH has attracted more than $233 million in inflows. As of September 18, the fund held nearly $890 million in net assets, while cumulative trading volume had surpassed $11 billion.
Under the split, shareholders of record at the close of trading on September 28 will receive two additional ZCSH shares for every share they own.
The additional shares will be distributed after the market closes on September 29, with split-adjusted trading set to begin on NYSE Arca before the market opens on September 30, according to a September 18 filing.
ZCSH shares are about to triple—heres what investors need to know
The SEC filing states that the split does not change the total economic value represented by an investors holding at the moment of adjustment. It will triple the number of ZCSH shares outstanding without changing the total value of investors holdings.
Grayscale said the post-split NAV per share is “expected to be approximately one-third” of its level immediately before the split, according to the funds release.
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For example, an investor holding 10 ZCSH shares before the split would own 30 shares afterward. If the shares were trading at $117.72 before the adjustment, the post-split price would be approximately $39.24, assuming the value of the underlying assets remains unchanged.
The ETF will continue trading under the ZCSH ticker, and its CUSIP number will remain unchanged.
A forward stock split changes the number of shares and the price per share but does not create additional economic value for investors. Each existing share is effectively divided into three shares, with the value distributed across the larger share count.
The move will reduce ZCSHs nominal share price, potentially making the ETF more accessible to investors who prefer a lower per-share price.
Grayscales filing makes clear that the adjustment does not represent a distribution or additional return for shareholders.
Zcash ETF inflows explode as investor demand accelerates
The split comes as demand for Grayscales Zcash ETF, ZCSH, has accelerated since its launch on NYSE Arca on Aug. 25.
Grayscale converted its former Zcash Trust into an exchange-traded product, giving U.S. brokerage investors exposure to Zcash without directly purchasing or custodying ZEC.
By Sept. 8, the fund had surpassed $500 million in assets under management and attracted more than $70 million in cumulative inflows.
A separate SEC disclosure showed that DCG International Investments acquired about $100 million worth of ZCSH shares through an authorized participant in exchange for 85,705.33 ZEC.
DCG International is indirectly owned by Digital Currency Group, the indirect parent of ZCSHs sponsor.
Zcash spot ETFs recorded $37.67 million in net inflows on Sept. 18, bringing cumulative September inflows to $249.12 million and total net assets to $914.53 million, according to SoSoValue data.
Zcash ETF inflows: Source: SoSoValue
Weekly inflows reached $98.21 million for the period ended Sept. 18, with trading volume totaling $500.32 million.
September inflows have already far exceeded the $21.83 million recorded throughout August, while total net assets climbed from $354.91 million at the end of August.
Zcash Rally Extends as ZEC Gains 93% in 30 Days
Zcash continued its sharp rally, rising 8.3% in 24 hours to $1,568.53 as buying momentum pushed the privacy-focused cryptocurrency above $1,500.
ZEC has gained 34.2% over the past seven days and 93% over the past 30 days, although it remains about 51.7% below its record high of $3,191.93.
The rally comes as investors watch Zcashs upcoming NU7 network upgrade. Developers currently target Oct. 6 for testnet activation and Nov. 5 for the mainnet launch, subject to a final review scheduled for Oct. 20.
Notably, the upgrade is expected to reduce block spacing from 75 seconds to 25 seconds.
Meanwhile, ZCSH, a fund tracking Zcash, closed at $117.72 on Sept. 18, down 1.97% after gaining 16.01% a day earlier and 14.11% on Sept. 16.
The fund traded between $114.33 and $120.73, with more than one million shares changing hands.
The ZCSH moves reflect broader ZEC volatility rather than the funds forward split alone.