Grayscale's ZCSH ETF grew its Zcash holdings 28.4% to 596,268.94 ZEC as of September 18, 2026, but the entire increase came from in-kind transfers rather than open-market buying. The fund now holds roughly 3.52% of ZEC's circulating supply, with its parent company DCG providing the single largest deposit.
Grayscale's ZCSH exchange-traded fund now controls nearly 600,000 ZEC, less than a month after the firm converted its legacy Zcash Trust into a spot ETF. That stake equals roughly 3.52% of the entire circulating supply of a coin built so that holders cannot be tracked.
Holdings jumped without a single open-market purchase
The fund, which trades on NYSE Arca, held 596,268.94 ZEC as of September 18, 2026, a 28.4% increase from what it started with when the ETF launched on August 25. None of that growth came from Grayscale buying ZEC on the open market. Instead, the entire jump was driven by in-kind creations, a mechanism where authorized participants deposit actual ZEC into the fund in exchange for newly issued shares.
The single largest contributor was DCG International Investments Ltd., which deposited approximately 85,705 ZEC on September 8, valued at around $100 million at the time. DCG is the parent company of Grayscale, so the deposit reflects a reshuffling within the family rather than outside demand.
Still, the fund has drawn real inflows. ZCSH pulled in over $70 million during its first two weeks of trading, and by mid-September additional weekly contributions of roughly $60.5 million pushed estimated assets under management into the $876 million to $914 million range. One particularly active day saw $46.6 million flow in.
The only spot ZEC fund on a US exchange
ZCSH is the only listed spot exchange-traded product offering direct exposure to ZEC on a US exchange. The fund converted from Grayscale's existing Zcash Trust, which had an initial assets under management of approximately $304 million at launch; in under a month, that figure has nearly tripled.
Coinbase Custody serves as the custodian, and the fund charges a 2.5% expense ratio. Grayscale also announced a 3-for-1 forward share split scheduled for September 28, 2026, a move that would lower the per-share price and theoretically improve accessibility for smaller investors.
A supply constraint building inside one fund
Zcash occupies a somewhat more palatable position than other privacy coins because it offers optional privacy: transactions can be either transparent or shielded using zero-knowledge proofs. Yet holding nearly 3.52% of ZEC's circulating supply inside a single fund creates a meaningful supply constraint for the asset's market dynamics.
Source: Crypto Briefing
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