Grayscale has scheduled a 3-for-1 share split for its Zcash exchange-traded fund, ZCSH, less than a month after the fund began trading, as demand for regulated Zcash exposure grows alongside intensifying competition among Zcash miners.

According to a filing with the U.S. Securities and Exchange Commission, shareholders of record at the close of business on September 28 will receive two additional ZCSH shares for every share they hold. The additional shares are scheduled to be distributed after market close on September 29, with split-adjusted trading set to begin on September 30.

The transaction will triple the number of shares held by each investor while reducing the per-share price proportionally. It does not change the overall value of an investor's position, nor does it increase ZCSH's underlying net assets. A lower per-share price could nevertheless make the ETF more accessible to investors seeking regulated exposure to Zcash. Because ETF shares trade on exchanges through standard brokerage accounts, a lower entry price also reduces the minimum outlay needed to buy even a single share — a practical consideration for smaller investors.

ZCSH Draws More Than $233 Million in Inflows

ZCSH has attracted more than $233 million in investor contributions since its August 25 launch, with several large daily inflows recorded during that period.

The largest single-day inflow cited in the report came on September 8, when the fund took in more than $112 million. That amount represented nearly half of its cumulative inflows at the time. ZCSH also posted $46.6 million in net inflows on Wednesday, indicating continued investor demand even as the broader cryptocurrency market remained volatile.

By September 17, the fund had reached $890 million in net assets and had surpassed $11 billion in cumulative trading volume.

The share split does not itself add capital to the ETF or alter its underlying holdings. Instead, it changes the number and price of the shares into which the existing investment is divided.

Zcash Rally Increases Mining Competition

Zcash is a proof-of-work cryptocurrency, launched in 2016, best known for its zero-knowledge cryptography. Its native ZEC token climbed to $1,521 during early Friday trading, reaching a level described by observers as an effective all-time high.

At the same time, the network's mining solrate — a measure of how many solutions miners produce per second — has increased significantly. Data from Zcash Info showed the solrate rising from about 25 GSol/s in late August to nearly 32 GSol/s, an increase of almost 28%. The rise indicates that additional computing power has entered the Zcash mining network as the value of ZEC has increased.

Mining difficulty also rose to approximately 291 million as the protocol adjusted to the greater amount of computing capacity securing the network.

Higher network computing power can strengthen competition among miners, because the available block rewards must be distributed across a larger amount of mining equipment. As a result, individual machines can generate lower returns even when the price of ZEC and overall network activity are rising.

Mining Costs Remain a Key Profitability Factor

Estimated gross revenue generated by Bitmain's Z15 Pro, a dedicated Zcash mining machine, has declined from its late-August level despite ZEC recording substantial price appreciation.

For mining operators, gross revenue does not represent final profitability. Electricity, equipment, cooling, and maintenance costs all affect the returns generated by individual machines.

Taken together, stronger investment demand for ZCSH and rising mining competition highlight two distinct areas of activity within the Zcash ecosystem. While the ETF has accumulated substantial investor capital since launching, miners are facing an increasingly competitive network as additional computing power joins the protocol.