Zcash ETF ZCSH Tops $500M in AUM After NYSE Arca Launch

Grayscale's Zcash ETF (ZCSH) has surpassed $500 million in assets under management following its Aug. 25 debut on NYSE Arca, as options linked to the fund also began trading. ZCSH launched Aug. 25 as the first exchange-traded product to provide spot ZEC exposure, and the issuer says it remains the only ETP offering spot ZEC access. The fund has attracted more than $70 million of cumulative inflows in the two weeks after launch, according to Steve Vanourny, Grayscale's Head of Index. A substantial portion of the asset base came from DCG International Investments Ltd., which contributed roughly $100 million worth of ZEC to the fund. In exchange, the investor received ZCSH shares after delivering 85,705.32563297 ZEC. The shares carry the same economics as other ZCSH shares and include no preference features. DCG International Investments is an indirect, wholly owned subsidiary of Digital Currency Group (DCG), which is also the indirect parent of the fund sponsor, Grayscale Investments Sponsors, LLC. Grayscale's Head of Research, Zach Pandl, said Zcash has averaged about 140% volatility over the past year, compared with roughly 40% for Bitcoin. Grayscale also noted Zcash's market capitalization is about 1% of Bitcoin's. Elevated volatility can translate into richer option premiums: at current levels, a hypothetical covered-call approach on Zcash implies about 70% annualized yield, versus about 30% for comparable Bitcoin covered-call strategies. Pandl cautioned that covered calls can still lose capital if spot prices decline beyond the premium collected. For investors seeking more defined outcomes, Pandl pointed to using long call and put structures. Grayscale also disclosed that affiliates may sell ZEC and TAO to cover expenses, fund investments, hedge exposures, or realize gains, and may trade additional ZCSH shares. Zcash launched in 2016 with a 21 million coin supply cap and a Proof-of-Work consensus model. The network supports both transparent and private transactions, with viewing keys enabling selective disclosure.