Tag: ZEC

  • Grayscale Zcash ETF Surpasses $1B in Assets Amid ZEC Price Rally

    Grayscale Zcash ETF Surpasses $1B in Assets Amid ZEC Price Rally

    Grayscale’s Zcash ETF (ticker: ZCSH) reached $1 billion in assets under management on September 24, less than a month after its debut on NYSE Arca. The milestone was driven by a combination of new investment, a sharp rise in Zcash’s (ZEC) price, and the value of ZEC tokens the fund already held before listing.

    How Much New Investment Did ZCSH Attract?

    Grayscale described the achievement as ‘$1B in AUM,’ but that figure reflects the total value of the fund’s assets, not solely new cash inflows. Data from SoSoValue shows cumulative net inflows of $306.12 million as of September 24, against roughly $1 billion in net assets.

    However, not all inflows represent fresh cash. A filing reveals that DCG International Investments—part of Grayscale’s parent group—acquired about $100 million of ZCSH shares on September 8 in exchange for 85,705 ZEC tokens. This in-kind transaction swapped tokens for shares, rather than adding new cash. Subtracting that leaves roughly $206 million in other reported net inflows, though the net figure may include other transaction types and does not specify how much came from outside investors’ cash purchases.

    Why Did the Fund’s Assets Grow Faster Than Inflows?

    ZCSH began exchange trading on August 25 as a conversion of the older Grayscale Zcash Trust, which already held ZEC. The ETF listing did not mark the start of its holdings; the trust had accumulated tokens beforehand. A September filing lists the Grayscale Zcash Trust as the ETF’s former name.

    ZEC’s price also surged after listing. According to CoinMarketCap, the token traded near $1,530 around the September 24 milestone—roughly double its price when ETF trading began. This price increase boosted the dollar value of ZEC already in the fund, lifting AUM without a corresponding rise in the number of tokens held.

    That distinction matters when interpreting the $1 billion figure. Existing holdings contributed to the fund’s starting size, while price changes altered their reported value. Net inflows track a separate metric: additions to the fund after accounting for withdrawals.

    What Happens Next for ZCSH Shareholders?

    Grayscale has announced a three-for-one share split. Shareholders of record at the close on September 28 will receive two additional shares for each share held. The split is expected to take effect before trading opens on September 30, with ZCSH retaining the same ticker.

    The net asset value per share will fall to about one-third of its previous level as the share count triples. The split itself does not add ZEC or change the total value of an investor’s holding. After it takes effect, ZEC’s price and changes in the fund’s holdings will continue to determine its assets under management.

    Also Read: 21Shares Launches ether.fi and Zcash ETPs Across Europe

  • 21Shares Expands European Crypto ETP Lineup with ether.fi and Zcash Products

    21Shares Expands European Crypto ETP Lineup with ether.fi and Zcash Products

    21Shares has launched two new physically backed exchange-traded products across Europe, giving investors access to ether.fi and Zcash through traditional brokerage platforms. The 21Shares ether.fi ETP (ticker: ETHFI) and the 21Shares Zcash ETP (ticker: ZCASH) track their respective underlying cryptoassets without requiring direct ownership of ETHFI or ZEC.

    Investors can buy these ETPs through European brokerage and financial institutions, bypassing the need for crypto exchange accounts, private key management, or personal token custody. Established third-party custodians hold the underlying assets.

    ether.fi ETP Expands Access to ETHFI

    The ether.fi ETP provides direct exposure to ETHFI, the native governance and utility token of the ether.fi ecosystem. Initially focused on liquid restaking, ether.fi has grown into a broader crypto financial services platform encompassing earning, borrowing, payments, and spending. Users have deposited billions of dollars across ether.fi products, according to 21Shares.

    Ether.fi also operates Liquid, a product that allocates deposited assets across decentralized finance strategies, rebalancing positions and compounding rewards. Jasmin Muelhaupt, Director of Financial Product Development at 21Shares, noted that European investors want easier access to projects building practical technology. “Ether.fi is a great example of an ecosystem moving beyond basic staking into real-world use cases like cards and borrowing,” she said.

    Zcash ETP Adds Privacy-Focused Crypto Exposure

    The Zcash ETP offers direct market exposure to ZEC. Zcash has a fixed maximum supply of 21 million coins, similar to Bitcoin, but adds optional privacy through shielded transactions. Users can choose whether transaction details remain transparent or use cryptographic tools to conceal certain information.

    The product aligns with Zcash’s focus on cryptographic security, including ongoing development for network upgrades such as the proposed NU6.3 upgrade featuring Ironwood Quantum Recoverability. While the upgrade has not yet been activated, it highlights the network’s long-term roadmap.

    Ether.fi and Zcash serve distinct purposes: ether.fi focuses on decentralized financial services, while Zcash centers on optional transaction privacy. This diversity allows 21Shares to expand its product range across two different areas of the digital asset market.

    Physically Backed Structure Removes Direct Custody Burden

    Both ETPs use a physically backed structure, meaning each ETP is linked to holdings of its corresponding cryptoasset rather than relying only on derivatives. Third-party custodians manage the cryptoassets, letting investors gain price exposure through brokerage accounts without handling wallets or private keys.

    Muelhaupt emphasized that the exchange-traded format makes both assets easier to add through traditional investment channels, similar to purchasing a standard stock or fund. 21Shares has offered physically backed crypto ETPs since 2018 and continues to expand its European lineup. The latest additions—ether.fi and Zcash—are now available through European brokerage platforms and financial institutions.

  • Zcash Drops Below $470 as Ironwood Upgrade Fails to Spur Demand

    Zcash Drops Below $470 as Ironwood Upgrade Fails to Spur Demand

    Zcash fell below the $470-$472 support cluster shortly after the Ironwood upgrade activated on July 28. ZEC traded near $461 as negative spot and futures flows continued to pressure the market.

    Ironwood Closes Orchard Supply Gap

    Developers discovered a soundness flaw in the zero-knowledge circuit behind Orchard, Zcash’s shielded pool. In theory, the flaw could have allowed counterfeit ZEC to be created undetected. A patch was delivered in June, and no evidence of exploitation was found. However, Orchard’s privacy design prevented users from independently verifying the pool’s recorded supply.

    Ironwood introduces a new shielded pool and version 6 transactions. It also closes Orchard to new deposits and routes withdrawals through a capped turnstile, limiting outflows to the total amount previously deposited. As balances enter the new pool, users can verify that migration creates no additional ZEC.

    Negative Flows Follow Earlier Price Weakness

    ZEC approached $560 earlier in July before forming lower highs and lower lows. By activation day, the price remained inside a falling channel near the $470 cluster. Ironwood had been widely discussed for weeks, but its activation did not attract enough demand to reverse the decline already visible on the chart.

    Coinglass data showed negative spot flows across every displayed period. The 12-hour balance recorded $10.2 million in inflows and $12.81 million in outflows, leaving a $2.6 million deficit. The eight-hour balance stood at negative $1.65 million, while four-hour flows reached negative $935,000. Futures also remained negative over longer periods, with the 12-hour balance at negative $7.1 million and the eight-hour reading at negative $2.98 million. Shorter futures windows turned positive, adding $418,000 over four hours and $213,000 over one hour.

    ZEC Faces Resistance Before $484

    The 0.382 Fibonacci level near $470 and the 50-day moving average at $472 formed a support zone that ZEC now trades below, turning them into resistance. The day’s high reached $470 near the Fibonacci level. A daily close above $472 would reclaim both barriers, while the 100-day moving average at $484 presents another hurdle.

    Below the market, $450 marks the nearest support and sits near the falling channel’s lower boundary. A close below that level could expose the 0.236 retracement near $420. More than 80% of all ZEC has entered circulation, reducing future dilution as Ironwood makes Orchard migration verifiable.

    Conclusion

    Ironwood closed a major supply-verification gap, yet ZEC fell below $470 as spot and longer-term futures flows remained negative. The market now watches $450 as the first support. A recovery above $472 would improve the technical picture, while losing $450 could expose $419-$420.