Grayscale's Zcash ETF (ZCSH) has crossed $1 billion in assets under management, reaching the milestone on September 24 less than a month after the fund began trading. Cumulative net inflows, however, accounted for only $306.12 million of that total, with the remainder tied to gains in the price of ZEC, the native token of the Zcash network, and to holdings carried over from Grayscale's earlier Zcash Trust.

The asset manager has also filed for a ZCSH High Income ETF, a second Zcash-focused product that still requires regulatory approval before it can begin trading.

ZCSH Hits $1 Billion in Under a Month

Grayscale converted its Zcash Trust into the ZCSH ETF after holding ZEC since 2017. Those existing holdings moved into the ETF structure when the fund launched on August 25. ZCSH passed $500 million in assets within two weeks and then doubled that figure in roughly 16 days.

The $1 billion figure, however, does not represent $1 billion in new investor money. Cumulative net inflows reached $306.12 million, which amounts to less than one-third of the fund's reported AUM. The balance reflects appreciation in ZEC's price along with the ZEC transferred from the earlier trust. According to the data, ZEC has roughly doubled since ZCSH began trading. That split is worth keeping in mind when reading ETF milestones, since headline AUM can climb on market appreciation alone, while cumulative net inflows are the measure of actual new money committed to the fund.

Rising ZEC Price Boosts Fund Value

ZEC traded at $1,533 after gaining 92% over the past 30 days. As the token's price climbed, the dollar value of the ZEC already held by the fund rose with it, meaning the ETF's AUM could increase without matching purchases from new investors. Existing ZEC holdings therefore provided part of the value behind the $1 billion figure.

The token's advance has coincided with broader product development. In Europe, 21Shares launched the region's first physically backed Zcash ETP, a development that came alongside the rise in ZEC and the growth in ZCSH assets. With ZCSH trading in the US and the 21Shares ETP now available in Europe, investors in both regions have exchange-traded routes to the same token, reflecting how the product lineup around Zcash has broadened alongside the token's advance.

Grayscale Files for ZCSH High Income ETF

Grayscale has filed for the ZCSH High Income ETF, according to a filing with the U.S. Securities and Exchange Commission. The product targets a high-income strategy and does not include a specific launch date. It remains unlisted, with no trading volume reported, and regulatory approval remains necessary before it can begin trading. Until that approval arrives, the filing stands as a statement of intent rather than an available product, and any SEC action on it — or the appearance of a launch date — would mark the next concrete development to watch.

Broader Crypto ETF Flows

Elsewhere, crypto ETFs recorded inflows during the week ended September 24. Bitcoin ETFs drew $2.25 billion, while Ethereum ETFs recorded $602.94 million. XRP ETFs brought in $52.95 million, Solana ETFs attracted $101.55 million, and Hyperliquid ETFs recorded $6.02 million. Those figures cover the broader crypto ETF market for the week. ZCSH growth sits within that wider stretch of demand for crypto ETF products, though its $306.12 million in cumulative net inflows covers the period since its August 25 launch rather than the single week captured by the figures above.

Source: Cryptofrontnews