Three Dates Set Out in SEC Filing

Grayscale is restructuring the share base of its Zcash exchange-traded fund, ticker ZCSH, through a 3-for-1 forward split that will take effect before trading opens on Sept. 30. The schedule is detailed in an exhibit to the fund’s 8-K filing with the U.S. Securities and Exchange Commission, the disclosure form used for material corporate events: shareholders of record at the close of business on Sept. 28 will receive two additional shares for every share held, the distribution will be completed after the close on Sept. 29, and split-adjusted trading will begin at the market open on Sept. 30. The SEC exhibit is available here.

ZCSH will remain listed on NYSE Arca under the same ticker and CUSIP, the standard security identifier used to route and settle trades. Each post-split share will represent approximately one-third of the pre-split net asset value, making the adjustment mechanical rather than a change in the fund’s underlying value. The filing gives a hypothetical example: an investor holding 10 shares at a net asset value of $300 per share would hold 30 shares at $100 each after the split, for the same total value of $3,000.

The document states that the split “will not change the total value of a shareholder's investment.” Its effect will be to reduce the per-share price while increasing the number of shares outstanding proportionally. The fund’s ZEC holdings, fee structure and the value of an individual holder’s position will not change as a result of the split.

A lower unit price can allow investors to trade ZCSH in smaller dollar increments through standard brokerage accounts, without directly holding ZEC or managing a wallet address or private key. Forward splits of this kind are a routine corporate action in conventional markets, where issuers have long used them to keep unit prices within reach of smaller account sizes. The three-part schedule also gives brokers and market makers a session between the record date and the start of split-adjusted trading to reconcile positions.

Grayscale announced the move on Sept. 18, less than two months after ZCSH debuted as the world’s first Zcash exchange-traded product.

From 2018 Trust to NYSE Arca

The split comes as the fund and the underlying asset expand. ZCSH began trading on Aug. 25 and recorded $232.3 million in net inflows as of. 17. On Sept. 8, the fund disclosed assets under management of more than $500 million.

ZEC also rose during the period. The cryptocurrency moved above $1,200 on Sept. 7 and was trading above $1,480 when Grayscale announced the split.

Grayscale Chief Legal Officer Craig Salm described the product’s history in a public post on X: https://x.com/CraigSalm/status/2092590537341628434. Salm said that when he joined Grayscale in 2018, the company’s Zcash vehicle was one of only four products it offered. Originally structured as the Zcash Investment Trust, it became the first publicly traded Zcash fund in 2021.

Salm also highlighted Zcash’s use of zero-knowledge proofs, which allow transaction details to be concealed while enabling selective disclosure for compliance purposes. He said that bringing a privacy-focused asset to public markets required “more regulatory back-and-forth than usual,” referring to the regulatory uncertainty that has affected privacy coins as a category.

Grayscale has said it directs 100% of ZCSH’s management fee to Zcash ecosystem development and the fund’s marketing, an arrangement that ties the product’s fee economics to the ecosystem it tracks.

Trading Activity and the NU7 Upgrade

Data from Hyperliquid, a decentralized perpetuals exchange, showed that a short position covering 12,285 ZEC was closed during the week at a loss of $10.68 million, ending the account’s run of 26 consecutive winning trades. The largest open short, held by trader Garrett Jin, covered 37,999 ZEC acquired at an average price of $671.05 and was approximately $33.87 million underwater. A 1,333 BTC long position offset part of that loss. Other accounts were down $12.53 million and $10.47 million on smaller short positions.

On the demand side, one address withdrew 15,860 ZEC, worth approximately $22.69 million, from Binance in a single day. ZEC was trading near $1,563 and ranked ninth by market capitalization at $26.47 billion after a 177.8% monthly gain, according to data cited as of 16:08 UTC.

The split’s mechanics are defined by the SEC filing, including the three key dates and the unchanged CUSIP. Separately, Zcash coinholders ratified the NU7 upgrade on Sept. 14. The upgrade reduces block intervals from 75 seconds to 25 seconds, keeps the existing halving schedule and retires the original Sprout shielded pool when the upgrade activates. Unlike the split, whose dates are fixed in the SEC filing, the upgrade’s activation follows its own timeline.

Together, the developments place Zcash’s shielded protocol design within a conventional exchange-traded fund structure while the network undergoes its own technical changes. The 3-for-1 split itself does not alter a shareholder’s total investment value or the fund’s underlying ZEC exposure.