Grayscale's Zcash exchange-traded fund will undergo a 3-for-1 forward share split, with new shares distributed on Sept. 29 and split-adjusted trading set to begin on Sept. 30, 2026, according to a filing with the U.S. Securities and Exchange Commission.

The move caps a strong first month for the fund, which trades under the ticker ZCSH. Investors have poured more than $233 million into ZCSH since its Aug. 25 debut, lifting net assets to roughly $890 million as of Sept. 17. The fund's underlying token, Zcash (ZEC), hit an intraday high of $1,521 on Friday — a level The Block described as a new "effective" all-time high for the privacy coin.

Details of the Split

In the filing submitted Friday, Grayscale said shareholders of record at the close of trading on Sept. 28 will receive two additional shares for every share they hold. The new shares will be paid out after market close on Sept. 29, and split-adjusted trading will begin before the market opens on Sept. 30 under the same ZCSH ticker and the same CUSIP number, the identifier used by brokers and clearinghouses.

A forward split does not change the value of an investment. It simply slices each share into smaller pieces, the same way a $20 bill can become four $5 bills without changing the total in a wallet. Grayscale's own example: 10 shares worth $300 each, or $3,000 in total, become 30 shares worth $100 each — still $3,000.

"The Forward Split is expected to decrease the price per share of the Fund with a proportionate increase in the number of Shares outstanding," Grayscale said in the form. "As a result of the Forward Split, holders as of the Record Date will receive two additional Shares, to be distributed on the Payment Date."

"Immediately following the Forward Split, the NAV per Share is expected to be approximately one-third of the NAV per Share immediately before the Forward Split."

Why Grayscale Is Splitting Shares

The reason is the speed and scale of Zcash's price climb. The coin has risen more than 2,800% over the past year, pushing the ETF's per-share price to a level retail investors cannot always buy in whole units. Traders can purchase fractions of a token on a crypto exchange, but most brokerages do not allow the purchase of fractional shares — the fundamental reason share splits exist.

Splits are a familiar tool outside crypto, too. Apple and Tesla both split their shares in 2020 after long stock rallies, citing the aim of keeping whole shares within reach of smaller accounts. What distinguishes ZCSH is the timeline: it reached that point within roughly a month of its debut.

A Month of Heavy Inflows

ZCSH has pulled in more than $233 million since it started trading on Aug. 25, including a $46.6 million single-day haul this week and a $112 million day on Sept. 8. Net assets stood at approximately $890 million as of Sept. 17.

ZCSH is the world's first spot exchange-traded fund to hold ZEC, Zcash's native token, directly. It was created through the conversion of Grayscale's older Zcash Trust, which already held roughly $313 million in ZEC by the time the fund began trading on NYSE Arca. From that starting base, the combination of fresh inflows and ZEC's rally has nearly tripled the fund's assets in under a month.

What Zcash Does

Zcash lets users choose whether their transactions are public or hidden. It relies on a form of cryptography known as zk-SNARKs — short for zero-knowledge succinct non-interactive arguments of knowledge — which can prove a payment is valid without revealing who sent it, who received it, or how much moved. Like Bitcoin, ZEC's supply is capped at 21 million coins. The token has circulated since 2016.

The technology has relevance beyond crypto circles as concerns grow over how easily digital money can be tracked. Wrapping a privacy coin in a regulated ETF — the same kind of vehicle that holds ordinary stocks in 401(k) accounts — makes that exposure available to anyone with a brokerage account, not only people who already own a crypto wallet. ZEC is also viewed as more regulatory-friendly than some rivals, such as Monero (XMR), which has been banned by major exchanges following pressure from law enforcement agencies.

Grayscale Has Split Shares Before

The company has taken this step previously for the same reason. In December 2020, Grayscale conducted a 9-for-1 split of its Ethereum Trust after ETH's climb had pushed the price of individual shares out of reach for smaller investors. ZEC's rally has now had the same effect on ZCSH.

The split also fits Grayscale's broader playbook of repackaging trusts for conventional investors: the asset manager converted its flagship Bitcoin and Ethereum trusts into spot ETFs in 2024, and ZCSH is the latest product in that line to be reshaped around brokerage-account access.