Grayscale to Split Zcash ETF Shares After $233 Million Inflow

Grayscale has filed with the SEC to split the shares of its Zcash ETF 3 for 1 after inflows topped $233 million. The fund, ticker ZCSH, has traded since Aug. 25, and the ZEC token briefly climbed to $1,521 on Friday. According to Decrypt, shares at the new price will start trading on Sept. 30.

What happened

On Friday, Sept. 18, Grayscale filed a form with the SEC for a forward share split of the Grayscale Zcash ETF, which trades on NYSE Arca under the ticker ZCSH. Shareholders of record at the close of trading on Sept. 28 will receive two additional shares for each share they hold. The number of shares outstanding will triple.

The filing includes Grayscale's own example. Ten shares worth $300 each, $3,000 in total, become thirty shares worth $100 each, and the total stays the same. The company expects net asset value per share to fall to roughly one third of its earlier level.

The split comes down to price, since Zcash has gained more than 2,800% in a year and a single fund share has become too expensive for small investors. A token can be bought in fractions on an exchange, while many brokers sell a security only as a whole share.

Calendar and terms of the split

Grayscale laid out the procedure by date, and the whole process takes three days at the end of September.

• The record date falls at the close of trading on Sept. 28, and it determines who receives the extra shares.
• The fund credits the new shares on Sept. 29 after the market closes.
• Split-adjusted trading begins before the open on Sept. 30.
• The ZCSH ticker and the CUSIP code, which brokers and clearing systems use to identify the security, stay the same.

Under the filing, every shareholder on the record date receives the additional shares. The fund's asset mix stays unchanged.

Inflows and the ZEC price

On a single day, Sept. 8, $112 million flowed into the fund, and another day this week brought $46.6 million.

ZCSH is the first spot exchange-traded fund to hold the ZEC token directly. It arrived on NYSE Arca as a straight conversion of Grayscale's older Zcash Trust, which already held about $313 million in ZEC by then. The fund did not start from zero. Zcash lets users choose between public and shielded transfers, and zk-SNARK proofs confirm that a payment is valid without revealing the sender, the recipient or the amount.

According to Decrypt, the token briefly reached $1,521 on Friday. The Block calls that level an effective all-time high. On Thursday ZEC gained about 20% in a day, and the privacy-coin sector, Cointelegraph reports citing Glassnode, sits 213% above its level at Bitcoin's October 2025 peak. A basket without ZEC gained roughly 85% over the year. Kurslog covered Zcash's surge past $1,000 earlier in September.

The network, the dev fund and Grayscale's precedent

Zcash developers are targeting Nov. 5 to launch the NU7 upgrade. It cuts the gap between blocks from 75 to 25 seconds and should speed up private payments by up to three times, CoinDesk reports. The testnet gets the upgrade on Oct. 6, and the final decision on the mainnet is set for Oct. 20.

Per Cointelegraph, a dispute over the Zcash development fund is under way. Dragonfly managing partner Haseeb Qureshi proposed closing it after 2028, arguing there is already enough money for the remaining work and that a fund nearing $100 million risks becoming politicized. It holds 63,962 ZEC, about $95 million by ZecStats' estimate. Paradigm founder Matt Huang argued for keeping the fund.

This is not Grayscale's first split: in December 2020 the company split shares of its Ethereum trust 9 for 1 after ETH's rise put a single share out of reach for smaller investors. Through the ETF, holders of ordinary brokerage accounts can invest in Zcash without a crypto wallet, while Monero, per Decrypt, has been removed from major exchanges under pressure from law enforcement. The ZCSH split takes effect on Sept. 30 if the schedule in the filing holds.