Grayscale slices Zcash ETF into thirds so your broker doesn't need a crypto-sized wallet 🪙

Grayscale's spot Zcash ETF, trading as ZCSH, filed with the U.S. Securities and Exchange Commission on Friday to carry out a 3-for-1 forward share split. Shareholders of record at the close of trading on Sept. 28 will receive two additional shares for every share they hold, with the new shares distributed after market close on Sept. 29 and split-adjusted trading beginning before the open on Sept. 30 under the same ticker ZCSH and the same CUSIP number.

The mechanics leave underlying value untouched. Grayscale illustrated the math as 10 shares worth $300 each, or $3,000 total, becoming 30 shares worth $100 each, still $3,000. "The Forward Split is expected to decrease the price per share of the Fund with a proportionate increase in the number of Shares outstanding," the filing states. "As a result of the Forward Split, holders as of the Record Date will receive two additional Shares, to be distributed on the Payment Date." The filing adds that "Immediately following the Forward Split, the NAV per Share is expected to be approximately one-third of the NAV per Share immediately before the Forward Split."

The split comes as ZEC, the native token of the Zcash network, has surged roughly 2,800% over the past year, lifting the price per ZCSH share to a level Grayscale views as a barrier for retail buyers. Unlike crypto exchanges, brokerage platforms do not natively support fractional shares of every listed product, and stock splits are the conventional tool used to bring unit prices back into reach of smaller accounts.

Investor demand for ZCSH has been heavy since its Aug. 25 launch. The fund has pulled in more than $233 million in cumulative inflows, including a $46.6 million session this week and a $112 million day on Sept. 8. Net assets sat around $890 million as of Sept. 17. The ETF originated from the conversion of Grayscale's older Zcash Trust, which held roughly $313 million in ZEC at the time ZCSH began trading on NYSE Arca.

Zcash uses a cryptography method known as zk-SNARKs to let users choose between transparent and shielded transactions, where payments can be validated without disclosing sender, receiver, or amount. Like Bitcoin, the network caps total supply at 21 million coins. ZEC climbed as high as $1,521 early Friday before retracing slightly, and the move gained attention after Paradigm co-founder Matt Huang disclosed an unspecified purchase of ZEC, describing Zcash as a "private complement to Bitcoin" and backing its developer fund as AI-driven cyber capabilities and quantum computing advance. ZCSH remains the first spot exchange-traded fund to hold ZEC directly.