The Zcash exchange-traded fund has drawn strong attention in the cryptocurrency market, even though it holds less than one billion dollars in assets. In a single week, this product accounted for 32.5 percent of all spot crypto ETF trading volume. The largest portion of that activity occurred on one day—September 16—when over eleven billion dollars worth of trades took place. That day's trading came as the Federal Reserve raised interest rates and followed the Senate’s failure to advance the CLARITY Act one day earlier.
The fund began trading on August 25 and has already become the third most popular altcoin ETF in terms of inflows, according to Yahoo Finance. It trails only XRP and Solana ETFs despite being only weeks old.
The Zcash ETF trades under the ticker ZCSH on NYSE Arca. It was created by converting the Grayscale Zcash Trust into an exchange-traded product. Grayscale says the fund gives investors exposure to Zcash without requiring them to directly buy and store the cryptocurrency.
Trading on September 16 alone reached more than eleven billion dollars according to data from SoSoValue. That single day’s volume was about 86 times higher than the amount traded on the final day of the week, which was September 18. The total trading for that Friday was just around one hundred twenty-seven million dollars.
The massive activity on September 16 equated to about 12.1 times the fund’s net assets. This level of trading reflects turnover rather than actual investment inflows into the fund. Turnover counts all transactions that happen through the ETF ticker, including those from arbitrage activity. Market makers can buy shares and then sell them multiple times during a session, increasing the turnover count without adding new money to the fund.
The full week's trading volume reached about $11.42 billion. September 16 accounted for more than 96 percent of that total, according to figures cited by Yahoo Finance.
About one-third of all crypto ETF trading activity in that week came from funds that started receiving inflows less than a month before. The rapid trading came even though ZCSH remained below $1 billion in net assets.
The fund has also grown quickly since its launch. Grayscale said on September 8 that ZCSH had already passed $500 million in assets under management just two weeks after it began trading. The company said cumulative inflows had exceeded $70 million at that point in addition to a $100 million investment connected to the launch.
More recent figures cited by financial publications put the fund near $900 million in assets as the price of Zcash rose sharply.
Grayscale announced another change on September 18. The fund will undergo a three-for-one forward share split. Shareholders of record on September 28 will receive two additional shares for every share they own. Split-adjusted trading is scheduled to begin September 30. The split will reduce the price of each share while leaving the total value of an investor's holdings unchanged.
Despite its strong performance in trading volume, the Zcash ETF did not make the list of top ten stocks to buy according to a recent report from 24/7 Wall St. The report was free and available to investors who entered their email addresses. The list of recommended stocks did not include Grayscale Zcash Trust.
The absence from that promotional stock list does not directly measure investor interest in ZCSH. Trading volume measures how frequently shares change hands while net inflows measure money entering or leaving the fund.
The Zcash ETF continues to show strong interest from traders. The fund’s performance in trading volume highlights the continued momentum in altcoin ETFs and their growing role in the broader crypto market.