Hassan Maishera
TL;DR
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Grayscale’s Zcash ETF will undergo a 3-for-1 share split less than five weeks after its market debut.
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ZCSH investors will receive two additional shares for every share held at the close of trading on Sept. 28.
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Split-adjusted trading is scheduled to begin on Sept. 30.
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Investors have poured more than $233 million into ZCSH since its Aug. 25 launch.
Grayscale Announces 3-for-1 ZCSH Share Split
Grayscale’s Zcash exchange-traded fund is set to undergo a 3-for-1 share split less than a month after it started trading.
Investors holding shares of the Grayscale Zcash ETF, which trades under the ticker ZCSH, at the close of trading on Sept. 28 will receive two additional shares for each share they own, according to a Friday filing with the U.S. Securities and Exchange Commission.
Grayscale will distribute the additional shares after the market closes on Sept. 29. Trading on a split-adjusted basis is expected to begin on Sept. 30.
The split will triple the number of outstanding shares while proportionally reducing the price of each share. It will not change the overall value of investors’ holdings or the fund’s total net assets.
ZCSH Attracts More Than $233 Million in Inflows
The planned split follows strong investor demand for the ETF since its Aug. 25 launch. Investors have collectively directed more than $233 million into ZCSH, including a $46.6 million daily inflow on Wednesday.
The fund recorded its largest single-day intake on Sept. 8, when net inflows surpassed $112 million.
ZCSH held approximately $890 million in net assets as of Sept. 17. Its cumulative trading volume had also exceeded $11 billion, highlighting substantial market activity during its first few weeks of trading.
A share split could make the ETF’s per-share price more accessible to retail investors, although it does not increase the underlying value of the fund.
Demand for the Grayscale fund has coincided with a sharp rally in Zcash’s native ZEC token.
ZEC climbed as high as $1,521 early Friday, reaching what would be considered a new effective all-time high. The cryptocurrency’s gains have increased interest in both the token and investment products offering regulated exposure to it.
The higher ZEC price has also encouraged miners to allocate additional computing resources to the network in pursuit of block rewards.
Zcash Mining Activity Jumps 28%
Zcash’s estimated solution rate, or solrate—the network’s equivalent of hashrate—has climbed from approximately 25 GSol/s in late August to nearly 32 GSol/s.
That represents an increase of almost 28%, according to data from Zcash Info. Mining difficulty has risen alongside the network’s computing power, reaching a record level of around 291 million.
The expansion indicates stronger competition among miners and greater computing power securing the Zcash blockchain.
Despite ZEC’s price rally, the increase in mining activity is reducing the revenue generated by individual machines.
Estimated gross revenue for Bitmain’s Z15 Pro miner had already fallen below its late-August level earlier this month. With more computing power competing for the same block rewards, each machine receives a smaller share of the network’s mining revenue.
As a result, miners may not benefit proportionally from further increases in ZEC’s price if network difficulty and competition continue rising.
