Grayscale’s Zcash ETF Surpasses $500 Million, Filing Shows $100 Million Affiliate Investment

Grayscale’s Zcash exchange-traded fund accumulated more than $500 million in assets within two weeks of listing, according to the fund sponsor. A regulatory filing indicates that approximately $100 million of the total came from a company affiliated with the fund’s sponsor.

ETF Assets Pass $500 Million

Grayscale said on Sept. 8 that its Zcash fund had surpassed $500 million in assets under management. The milestone came roughly two weeks after the fund began trading.

The fund provides investors with exposure to Zcash, a cryptocurrency designed to support private transactions through zero-knowledge cryptography. As an exchange-traded product, it allows investors to gain exposure to the asset through traditional brokerage accounts without directly holding Zcash.

Filing Discloses Affiliate Investment

A regulatory filing shows that about $100 million of the fund’s assets came from a company affiliated with the fund’s sponsor. The investment represents a significant portion of the fund’s reported holdings and was made during the early period following its listing.

Affiliate investments can help provide initial liquidity and support trading during a fund’s launch. However, they also mean that reported assets may not entirely reflect demand from unaffiliated outside investors.

Early Asset Growth Draws Attention

The disclosure adds context to the fund’s rapid accumulation of assets. While the ETF’s total assets exceeded $500 million, roughly one-fifth of that amount was connected to the sponsor’s corporate group, based on the filing details.

The fund’s future asset growth and trading activity will provide a clearer indication of broader investor demand for regulated Zcash investment products.