Grayscale’s Zcash ETF reaches $1 billion in assets

Grayscale’s Zcash exchange-traded fund reached $1 billion in net assets on September 24, while its cumulative net inflows stood at $306.12 million, according to figures reported for that date. The gap reflects the value of ZEC holdings carried over from an earlier trust and the cryptocurrency’s price increase, as well as new investment, rather than $1 billion in fresh investor money. The fund, trading as ZCSH, began trading on NYSE Arca on August 25 after Grayscale converted its Zcash Trust into an exchange-traded fund. The trust had held ZEC before the conversion. ZCSH passed $500 million in assets within about two weeks and doubled from that level to $1 billion in roughly 16 days, according to the reports. Assets under management measure the current value of a fund’s holdings, while net inflows track money entering the fund after outflows. By September 24, the reported $306.12 million in cumulative net inflows represented less than one-third of ZCSH’s $1 billion in net assets. The remaining value was attributed largely to its pre-existing ZEC holdings and the rise in the token’s price since the fund began trading.