Zcash ETF Tops $500M As Options Trading Starts

The Zcash ETF, trading under the ticker ZCSH, said on Sept. 8 that its assets under management had passed $500 million, two weeks after its NYSE Arca debut. The milestone coincided with the start of listed options trading on the fund and included an approximately $100 million affiliated investment.

An official filing exhibit with the U.S. Securities and Exchange Commission says DCG International Investments acquired ZCSH shares worth about $100 million through an authorized participant. The affiliate of the fund’s sponsor contributed 85,705.32563297 ZEC in exchange for those shares.

ZCSH reports more than $500 million in assets

The fund said cumulative inflows exceeded $70 million during its first two weeks as an exchange-traded product. Head of Index Steve Vanourny said those inflows, together with the DCG investment, “meaningfully increase the scale of the Fund” as it works to broaden access to ZEC.

ZCSH began trading on NYSE Arca on Aug. 25. BlockchainReporter covered the debut of the first U.S. spot Zcash ETF when the product converted from a private trust. The newly reported asset total and options launch are later developments that change the fund’s operating scale and the tools available around it.

Options add a new way to manage ZCSH exposure

Options on ZCSH also began trading on NYSE Arca on Sept. 8. According to the sponsor’s announcement, the contracts give market participants exchange-traded instruments for managing risk, generating income or expressing a view on the fund. The filing does not provide initial options volume, open interest or participation figures.

The shares acquired by DCG International Investments have no preference features and are economically the same as other fund shares, the exhibit states. It also identifies the investor as an affiliate of both Digital Currency Group and Grayscale Investments Sponsors, making that relationship important context for the reported increase.

The fund is not a registered investment company

ZCSH offers brokerage-account exposure to ZEC, but it is not a direct investment in the token. The product is also not registered under the Investment Company Act of 1940 and therefore does not carry the same regulatory protections as funds registered under that law.

The sponsor describes ZEC exposure as highly volatile and warns that investors could lose their entire investment. The Sept. 8 disclosure establishes the reported AUM threshold, the options launch and the completed affiliated share acquisition; it does not establish future inflows, fund performance or demand for the new derivatives.